CCP Slaps Rs. 275 Million in Penalties for Cartelization, Deceptive Marketing in 2024 

The Competition Commission of Pakistan (CCP) levied penalties worth Rs. 275 million in 2024 on companies found guilty of cartelization, collusion, and deceptive marketing in various sectors, including paint manufacturing, pharmaceuticals, dairy products, and Fast-Moving Consumer Goods (FMCG).   In a press release, CCP said as part of its policing efforts, 32 show-cause notices were issued to companies across sectors such as fertilizer, real estate, education, public procurement in power distribution companies, pharmaceuticals, and FMCG. These notices were in response to potential violations of the Competition Act related to cartel activities and deceptive practices.   Additionally, the Commission initiated seven fresh inquiries into industries like transportation, telecommunication, construction, and FMCG for suspected cartelization and collusion, which contravene sections 3 and 4 of the CCP Act. Several companies involved in sectors such as the transportation of edible oil, telecommunications, electric fan manufacturing, and construction were found to be in violation of anti-competitive laws. Meanwhile, FMCG, pharmaceutical, and services sectors were investigated for engaging in deceptive marketing practices, breaching section 10 of the Act.  Moreover, the CCP recovered Rs. 100 million in penalties from violators by successfully securing judgments in courts, marking the highest-ever penalty recovery since the Commission’s inception. The CCP concluded 11 inquiries into cartelization cases in sectors like wheat flour, public procurement, energy, FMCG, civil aviation, and steel. Another four investigations into deceptive marketing were finalized in the FMCG, construction, pharmaceutical, and automobile sectors.  Furthermore, in 2024, the CCP approved 64 merger applications and granted 56 exemptions, predominantly in the FMCG, LNG, power, real estate, telecom, textile, and renewable energy sectors. The Commission also issued a policy note to the Ministry of Science and Technology, recommending amendments to Pakistan Standards and Quality Control Authority (PSQCA) regulations to mandate the inclusion of manufacturing and expiry dates on cement bags.  In a bid to enhance market surveillance, the CCP operationalized its Market Intelligence Unit (MIU), a cutting-edge initiative aimed at detecting anti-competitive practices. Through advanced data collection and analytical techniques, the MIU has already identified over 125 instances of market manipulation. This initiative promises to strengthen the CCP’s ability to investigate and prevent anti-competitive behavior more efficiently, paving the way for a more transparent and competitive marketplace in Pakistan.