Tribunal Upholds Order Against Appliance Brands for Price Fixing

The Competition Appellate Tribunal has validated the ruling by the Competition Commission of Pakistan (CCP) against prominent electronic appliance brands. The CCP’s initial order addressed their involvement in resale price maintenance (RPM), a prohibited form of price collusion as defined under the Competition Act of 2010.

While affirming the violation findings, the tribunal lessened the financial penalty levied by the CCP to Rs90 million. The implicated companies are required to remit this sum within a month.

The CCP had originally penalized these entities after determining that they had engaged in activities that suppressed competition within the home appliance market. Specifically, they restricted their dealers from offering products at prices below a set minimum, providing discounts, or creating promotional bundles.

Companies Argue Penalty Was Too High

During their appeal to the tribunal, the companies did not contest the violation itself. Their argument centered on the assertion that the imposed penalty was excessive. The tribunal acknowledged that the companies had taken corrective steps by compensating dealers for amounts imposed under their price-fixing policies. Furthermore, they pledged to ensure strict adherence to the Competition Act in the future.

Considering these mitigating elements, notably the cooperative attitude and the compensation provided to affected parties, the tribunal opted to reduce the penalties originally assessed on the companies. The tribunal also took note of the companies’ dedication to upholding lawful business conduct moving forward.

The CCP is encouraging all businesses to abstain from any form of price fixing. This includes setting minimum or maximum resale prices and placing limitations on discounts or promotional offers. Such actions are considered severe breaches of competition law.