Competition Commission wraps up 2025 with strong enforcement against cartelisation

ISLAMABAD: The Competition Commission of Pakistan (CCP) imposed fines of nearly Rs 2 billion on various undertakings during 2025 for violations related to cartelization, while the recovery of past fines and penalties stood at Rs 1.3 billion.

The CCP data revealed that the commission took strong enforcement action in 2025 against cartelization, price fixing, and other anti-competitive practices across key sectors, including sugar, steel, poultry, fertilizer, education, transport, advertising, power supply, and manufacturing, to protect consumers and ensure fair markets.

In the sugar sector, CCP has issued show cause notices to 10 sugar mills in Punjab for colluding on the start of the crushing season and fixing the sugarcane procurement price at Rs. 400 per maund. The Commission found that the mills jointly decided to delay crushing during a meeting held on November 10, 2025, in violation of Section 4 of the Competition Act, 2010.

CCP conducts raids in Lahore over suspected cartelisation

In a major enforcement action, CCP imposed heavy penalties on Aisha Steel Mills Limited and International Steels Limited for cartelization and price fixing. Aisha Steel Mills was fined Rs. 648 million, while International Steels was penalized Rs. 914 million. The inquiry found coordinated pricing, exchange of sensitive information, and an average steel price increase of 111 percent over three years.

To protect parents and students, CCP issued show cause notices to seventeen major private school systems for abusing dominance by forcing parents to purchase expensive, logo-branded notebooks, workbooks, and uniforms from selected vendors.

In the poultry sector, CCP imposed a collective fine of Rs. 155 million on eight major poultry hatcheries for cartelization and price fixing of day-old broiler chicks, which contributed to higher poultry prices.

Within the fertilizer sector, CCP imposed penalties of Rs. 50 million each on six major urea manufacturers and Rs. 75 million on a leading industry association, totalling Rs. 375 million, for coordinated conduct that restricted competition.

The CCP also fined the Transporters of Goods Association and the Local Goods Transport Association Rs. 5 million each for rate fixing through collective decisions that restricted independent pricing by transporters.

Strong enforcement actions were also taken through raids and inspections. CCP conducted raids in Lahore on entities linked to cartelization in the out-of-home advertising market over alleged price fixing and bid coordination. Similar raids were carried out on suppliers involved in transformer reclamation materials for power distribution companies over suspected bid rigging.

In Gujrat, CCP conducted search and inspection operations at the premises of two electric fan manufacturers and their industry association over suspected cartelization and price fixing, securing documents and digital evidence.

Moreover, significant progress was made on the litigation front, as the Competition Appellate Tribunal (CAT) upheld key cartelization cases. CAT disposed of the long-pending Pakistan Poultry Association (PPA) cartel case, upheld CCP’s findings, and ordered recovery of a reduced penalty of Rs25 million.

The Tribunal also upheld CCP’s order against the Pakistan Flour Mills Association (PFMA) for fixing wheat flour prices and directed payment of a Rs35 million fine. In the poultry sector, CAT admitted and fixed for hearing the appeals of eight hatcheries fined Rs155 million for cartelization in day-old chick prices, while attempts to stall the proceedings were rejected by the Lahore High Court.

Through these actions in 2025, the CCP reinforced its zero-tolerance approach to cartelization and its commitment to fair, transparent, and competitive markets.

Copyright Business Recorder, 2025