Tribunal Upholds CCP’s Rs. 35 Million Fine on Flour Mills Association for Price Fixing

The Competition Appellate Tribunal (CAT) has upheld the order of the Competition Commission of Pakistan (CCP) against the Pakistan Flour Mills Association (PFMA) for fixing the price of wheat flour, in violation of Section 4 of the Competition Act, 2010. The Tribunal directed the Association to deposit a fine of Rs. 35 million into the national exchequer. The CCP had initiated an inquiry against PFMA based on multiple news reports indicating an unusual hike in wheat flour prices across Pakistan. The inquiry concluded that PFMA was engaged in anti-competitive conduct. PFMA had filed an appeal against the CCP’s order before the Tribunal. CCP’s counsel argued in court that Sections 4(1) and 4(2)(a) of the Competition Act, 2010 prohibit any agreement or decision between undertakings, including associations, aimed at fixing prices. The CCP maintained that the repeated and structured issuance of price instructions by PFMA displaced the commercial autonomy of individual mills, constituting a horizontal agreement with an anti-competitive object. After hearing arguments from both sides and examining the record, the Tribunal upheld CCP’s findings but reduced the penalty to Rs. 35 million. Reaffirming CCP’s commitment to ensuring fair competition, Chairman Dr. Kabir Ahmed Sidhu cautioned business associations against using their platforms to share sensitive pricing information or engage in collusive practices to maximize profits.