CCP Intensifies Crackdown on Unfair Business Practices in FY25

The Competition Commission of Pakistan (CCP) intensified its enforcement activities during fiscal year 2024-25, actively addressing cartel behavior, the misuse of dominant market positions, and misleading marketing tactics. These measures were implemented to foster equitable business conduct across various sectors, according to an official CCP statement released on Monday.

Details reveal that the commission launched 24 fresh investigations, with 11 focused on cartelization and 13 on deceptive marketing strategies.

The commission successfully finalized 14 investigations, advancing them to the adjudication phase. The sectors under examination spanned e-commerce, telecommunications, aviation, steel, transport, edible oils and ghee, pharmaceuticals, construction, commodities, and education.

Firms Penalized for Anti-Competitive Agreement

Two companies in the pharmaceutical industry were found guilty of engaging in an anti-competitive agreement valued at Rs1.13 billion.

The CCP’s Cartel and Trade Abuse Department initiated 11 new investigations across diverse sectors, including e-commerce, telecommunications, aviation, steel, transport, cooking oil, edible ghee, and gas, to combat cartelization and market manipulation.

In addition to these new inquiries, ongoing investigations from prior periods were also pursued.

The department successfully concluded 9 inquiries, subsequently referring them for adjudication.

A significant case involved ten steel structure suppliers allegedly involved in bid rigging concerning tenders issued by power distribution companies (DISCOs). Another prominent case scrutinized two major flat steel producers accused of engaging in price-fixing activities.

In the transport sector, actions were taken against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for purportedly fixing freight rates for cargo transportation from Port Qasim.

In the cable manufacturing sector, companies faced investigation for preventing dealers from offering discounts below specified prices—a practice deemed a prohibited agreement under Resale Price Maintenance (RPM).

The CCP’s Office of Fair Trade (OFT) commenced 13 new investigations into businesses employing deceptive marketing tactics. Furthermore, 8 inquiries from the preceding year remained active.

The OFT successfully concluded five investigations—two within the pharmaceutical sector and one each in the construction, commodities, and education sectors.

The CCP reported recovering a Rs10 million penalty from PIA for abusing its dominant market position.

Noteworthy instances of deceptive marketing included AR Amreli Builders for the unauthorized use of Amreli Steels’ trademark, Panther Tyres for allegedly making false claims of being “Pakistan’s No. 1 Tyre,” and FS Cosmetics for imitating Dabur Amla Hair Oil’s packaging— thereby perpetrating misleading claims.

Chairman CCP, Dr Kabir Sidhu, stated that cartelization, market manipulation via the abuse of dominance, and deceptive marketing significantly undermine consumer rights and distort healthy competition.

He emphasized the CCP’s unwavering stance against such practices and its dedication to enforcing stringent measures against them.