Competition Appellate Tribunal Upholds Order Against Electronic Appliance Brands

The Competition Appellate Tribunal has affirmed the ruling by the Competition Commission of Pakistan (CCP) against prominent electronic home appliance brands. The CCP’s order addressed their involvement in Resale Price Maintenance (RPM), a prohibited form of price control as defined by the Competition Act of 2010. While validating the violation findings, the Tribunal lessened the financial penalty initially imposed by the CCP to 90 million, instructing the implicated companies to remit this sum within a month.

The CCP had previously levied sanctions on these companies after determining that they had engaged in practices that stifled competition. Specifically, they restricted their retailers from offering products at prices lower than stipulated levels, providing discounts, or creating bundled deals.

Companies’ Defense and Tribunal’s Observations

In their appeal to the Tribunal, the companies did not contest the violation itself but contended that the penalty was excessive. The Tribunal acknowledged that the appellants had taken corrective measures, including compensating dealers for amounts collected under their price-fixing policy. Furthermore, they pledged full adherence to the Competition Act in the future.

Mitigating Factors and Penalty Reduction

Considering these mitigating factors, notably their cooperative attitude and the compensation provided to affected parties, the Tribunal reduced the penalties imposed on both companies. The Tribunal also took note of the companies’ dedication to conducting business lawfully moving forward.

The CCP is encouraging all businesses to abstain from any form of price manipulation. This includes setting minimum or maximum resale values and placing limitations on discounts or promotional offerings, as such actions are serious breaches of competition regulations.