CCP Imposes Rs275m Fines for Cartelisation and Deceptive Marketing in 2024
The Competition Commission of Pakistan (CCP) made headlines in 2024, imposing fines amounting to a whopping Rs275 million. The penalties targeted practices like cartelisation, collusion, and deceptive marketing in sectors like pharmaceuticals, dairy, and fast-moving consumer goods (FMCG). This strong action by the regulator shows its commitment to ensuring fair market competition.
In the past year, the CCP issued 32 showcause notices to companies in various sectors such as fertilisers, real estate, education, and public procurement in power distribution. The focus was on potential violations of the Competition Act, particularly in terms of cartel behavior and misleading advertising.
As part of its efforts, the CCP initiated seven new probes into industries like telecommunications, construction, transportation, and FMCG for suspected collusion and cartelisation. Investigations uncovered violations in sectors like edible oil transportation, electric fan manufacturing, and construction. In addition, companies in FMCG, pharmaceuticals, and services were scrutinized for deceptive marketing practices.
One key highlight of the year was the CCP’s recovery of about Rs100 million in penalties through successful court judgments, marking its highest-ever recovery. The commission also concluded 11 investigations into cartelisation across various sectors and finalized four cases related to deceptive marketing practices.
In a significant move, the CCP approved 64 mergers and granted 56 exemptions during the year, with a focus on sectors such as FMCG, LNG, power, telecom, textiles, and renewable energy. The commission also issued a policy note to the Ministry of Science and Technology urging changes to regulations mandating manufacturing and expiry dates on cement bags.
To enhance enforcement capabilities, the CCP introduced its market intelligence unit (MIU), a tech-driven initiative aimed at detecting anti-competitive practices. Through advanced analytics, the MIU identified over 125 instances of potential market manipulation, marking a significant step towards promoting transparency and fair competition in the economy.
