Rs275 Million Penalties Enforced by CCP in 2024

The Competition Commission of Pakistan (CCP) intensified its efforts against anti-competitive behaviors in 2024, imposing fines totaling Rs275 million on various companies. These penalties targeted practices such as cartelization, collusion, and deceptive marketing within key sectors, including pharmaceuticals, dairy, and Fast-Moving Consumer Goods (FMCG).

Throughout the year, the CCP issued 32 show-cause notices to companies operating in various sectors, including fertilizer, property, education, and power distribution, regarding procurement practices. These announcements addressed potential breaches of the Competition Act concerning cartel behavior and deceptive representations.

The Commission has initiated seven additional investigations into various sectors, including telecommunications, construction, transport, and FMCGs, concerning suspected cartelization and collusion, which violate sections 3 and 4 of the Competition Act. Furthermore, the firms operating in the fast-moving consumer goods, pharmaceutical, and services industries faced criticism for breaching Section 10 of the Act due to misleading advertising practices.

In a notable achievement, the CCP recovered Rs100 million through court judgments which is the highest amount since its establishment. The Commission concluded 11 investigations into cartel activities spanning various sectors, including wheat flour, public procurement, energy, FMCG, civil aviation, and steel. Four investigations into misleading marketing practices across the fast-moving consumer goods, construction, pharmaceutical, and automotive industries have been concluded.

In addition, the CCP has given the green light to 64 merger applications and has issued 56 exemptions, focusing mainly on sectors such as FMCG, LNG, power, real estate, telecom, textile, and renewable energy. The Commission has released a policy note directed at the Ministry of Science and Technology, urging changes to the regulations of the Pakistan Standards and Quality Control Authority (PSQCA) to require that manufacturing and expiry dates be printed on cement bags.

The CCP has taken a significant step in strengthening market oversight by launching its Market Intelligence Unit (MIU), a sophisticated initiative aimed at identifying anti-competitive behaviors. The MIU has uncovered more than 125 cases of market manipulation using advanced data collection and analytical methods.

The recent initiatives highlight the CCP’s steadfast dedication to promoting a vibrant marketplace, safeguarding equitable business conduct, and prioritizing consumer welfare throughout Pakistan.