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.

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“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.

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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.