Anti-competitive practices: CCP levies Rs275m penalties on firms in 2024

ISLAMABAD: In a significant crackdown on anti-competitive practices, the Competition Commission of Pakistan (CCP) has levied penalties totalling Rs 275 million in 2024.

These fines were imposed on companies found guilty of cartelization, collusion, and deceptive marketing in various sectors, including paint manufacturing, pharmaceuticals, dairy products, and Fast-Moving Consumer Goods (FMCG). This action underscores the CCP’s ongoing efforts to ensure fair competition in Pakistan’s markets.

As part of its policing efforts, the CCP issued 32 showcase notices to companies across sectors such as fertilizer, real estate, education, public procurement in power distribution companies, pharmaceuticals, and FMCG. These notices were in response to potential violations of the Competition Act related to cartel activities and deceptive practices.

Additionally, the Commission initiated seven fresh inquiries into industries like transportation, telecommunication, construction, and FMCG for suspected cartelization and collusion, which contravene sections 3 and 4 of the CCP Act.

Several companies involved in sectors such as the transportation of edible oil, telecommunications, electric fan manufacturing, and construction were found to be in violation of anti-competitive laws. Meanwhile, FMCG, pharmaceutical, and services sectors were investigated for engaging in deceptive marketing practices, breaching section 10 of the Act.

Moreover, the CCP recovered Rs 100 million approximately in penalties from violators by successfully securing judgments in courts, marking the highest-ever penalty recovery since the Commission’s inception. The CCP concluded 11 inquiries into cartelization cases in sectors like wheat flour, public procurement, energy, FMCG, civil aviation, and steel. Another four investigations into deceptive marketing were finalized in the FMCG, construction, pharmaceutical, and automobile sectors.

Furthermore, in 2024, the CCP approved 64 merger applications and granted 56 exemptions, predominantly in the FMCG, LNG, power, real estate, telecom, textile, and renewable energy sectors. The Commission also issued a policy note to the Ministry of Science and Technology, recommending amendments to Pakistan Standards and Quality Control Authority (PSQCA) regulations to mandate the inclusion of manufacturing and expiry dates on cement bags.

Copyright Business Recorder, 2024