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FY2024-25: CCP ramps up enforcement against cartels, deceptive marketing
FY2024-25: CCP ramps up enforcement against cartels, deceptive marketing

Business Recorder

time7 hours ago

  • Business
  • Business Recorder

FY2024-25: CCP ramps up enforcement against cartels, deceptive marketing

The Competition Commission of Pakistan (CCP) undertook robust enforcement measures in FY 2024–25, targeting cartelisation, abuse of dominant position, and deceptive marketing practices to ensure fair business practices in markets, a CCP statement read on Monday. As per the details, the commission initiated 24 new inquiries—11 related to cartelisation and 13 concerning deceptive marketing practices. 'It successfully concluded 14 investigations, which were forwarded for the adjudication process. The sectors under scrutiny included e-commerce, telecommunications, aviation, steel, transport, edible ghee and cooking oil, pharmaceuticals, construction, commodities, and education. Two firms found guilty of Rs1.13bn anti-competitive pact in pharmaceutical sector 'The Cartel and Trade Abuse Department of the CCP, in its efforts to curb cartelisation and market manipulation, initiated 11 new inquiries across various sectors, including e-commerce, telecommunications, aviation, steel, transport, edible ghee, cooking oil, and gas,' the statement read. In addition, the CCP said, ongoing inquiries from previous periods were also under investigation. 'The department successfully concluded 9 inquiries, which were subsequently forwarded for adjudication.' A key case involved ten steel structure suppliers allegedly engaged in bid rigging in tenders issued by power distribution companies (DISCOs). Another major case focused on two leading flat steel manufacturers accused of price fixing, according to the statement. In the transport sector, proceedings were initiated against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for allegedly fixing freight rates for cargo transport from Port Qasim. In the cables industry, companies were investigated for restricting their dealers from offering discounts below the notified prices—an act considered a prohibited agreement under Resale Price Maintenance (RPM). 'The CCP's Office of Fair Trade (OFT) initiated 13 new investigations against businesses involved in deceptive marketing practices. Additionally, 8 inquiries from the previous year remained ongoing. 'OFT successfully concluded five investigations—two in the pharmaceutical sector and one each in the construction, commodities, and education sectors,' the CCP said. CCP says recovered Rs10mn penalty from PIA for 'abusing dominant position' The commission further said notable cases of deceptive marketing had included AR Amreli Builders for unauthorised use of Amreli Steels' trademark, Panther Tyres for allegedly misleading claims of being 'Pakistan's No. 1 Tyre,' and FS Cosmetics for copying Dabur Amla Hair Oil's packaging— for making what it called misleading claims. Chairman CCP, Dr Kabir Sidhu, was quoted as saying in the statement that cartelisation, market manipulation through abuse of dominance, and deceptive marketing severely harm consumer rights and distort healthy competition. He emphasised that the CCP maintains zero tolerance for such practices and is committed to taking strict action against them.

United Distributors Pakistan, International Brands mull legal action against CCP penalty
United Distributors Pakistan, International Brands mull legal action against CCP penalty

Business Recorder

time3 days ago

  • Business
  • Business Recorder

United Distributors Pakistan, International Brands mull legal action against CCP penalty

Following penalties imposed by the Competition Commission of Pakistan (CCP), United Distributors Pakistan Limited (UDPL) and International Brands (Private) Limited (IBL) said they are reviewing the order and considering legal options. UDPL, engaged in the manufacturing of pesticides and fertilizers, said in its filing to the Pakistan Stock Exchange (PSX) on Friday. 'The CCP had initiated proceedings against UDPL and IBL, with respect to a non-compete agreement that had been entered into between the parties, in respect of which the company had made disclosures under the applicable law from time to time (and last on May 15, 2024),' read the notice. Two firms found guilty of Rs1.13bn anti-competitive pact in pharmaceutical sector The CCP found UDPL and IBL guilty of Rs1.13 billion anti-competitive agreement. It imposed a total penalty of Rs42 million on both companies for entering into and giving effect to the non-compete agreement that the commission said had violated Section 4 of the Competition Act, 2010. In its statement on Wednesday, the CCP said the agreement had constituted an illegal market-sharing arrangement that foreclosed competition and had been executed in clear contravention of the law. Meanwhile, UDPL, in its statement on Friday, maintained that the companies had been transparent about this agreement and had made several disclosures — the last one on May 15, 2024. 'Although the actual implementation of the restrictive arrangement under the said agreement was (and continues to be) subject to seeking the requisite exemption from CCP, regrettably, due to certain internal delays in obtaining the necessary information, the company and IBL were unable to file the exemption application in a timely manner. 'Prior to the filing, CCP issued show-cause notices to the companies on the basis that the company had received consideration under the agreement from IBL, which the CCP became aware of pursuant to the transparent disclosures made by the company,' UDPL said. The company shared that an exemption application was subsequently filed by the parties, which is currently pending. UDPL maintained that it 'has always been transparent in its disclosures demonstrating its intention to comply with all applicable laws'. 'Consequently, pursuant to an order dated July 2, 2025, received by the company on July 3, 2025, the CCP has, inter alia, levied a penalty of Rs21,000,000/- on the company for allegedly acting upon the restrictive arrangement and disclosing the same without seeking prior clearance/exemption from the CCР. 'The company, along with IBL, are currently reviewing the order and seeking advice regarding appropriate remedies that may be taken, as the parties are of the view that cogent grounds exist in favour of the companies and their actions,' it said. The CCP imposed a penalty of Rs20 million each on UDPL and IBL for violating Section 4(1) and 4(2)(b) of the Act. An additional penalty of Rs1 million was levied on UDPL under Section 38 for making disclosures to PSX without regulatory clearance.

CCP approves acquisition of shareholding in IMS Electric
CCP approves acquisition of shareholding in IMS Electric

Business Recorder

time4 days ago

  • Business
  • Business Recorder

CCP approves acquisition of shareholding in IMS Electric

The Competition Commission of Pakistan (CCP) has approved the acquisition of shareholding in IMS Electric (Private) Limited under a share purchase agreement, according to a CCP statement on Thursday. The shares will be acquired by Danish Ghous and Syed Jawad Bin Saghir from the current shareholders — Ms Anila Haq, Mr Faizan Ul Haq, and Ms Tooba Haq. In its Phase-I review, the CCP assessed the relevant product market as 'Switchgears and Transformers'. Two firms found guilty of Rs1.13bn anti-competitive pact in pharmaceutical sector 'The commission concluded that the proposed transaction does not substantially lessen competition nor create or strengthen a dominant position in the market,' the statement read. IMS Electric (Private) Limited, formerly known as Schneider Electric Pakistan, is engaged in the manufacturing and sale of switchgears and distribution boards, as well as the trading of transformers. The company also provides services related to electrical erections and installations.

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