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Tag: Competition Commission of Pakistan

  • Prime Minister directs action against profiteers

    Prime Minister directs action against profiteers

    ISLAMABAD: Prime Minister Imran Khan on Monday directed authorities to take stern action against profiteers to ensure fair prices of essential items.

    The prime minster chaired a review meeting on commodity prices. He directed that Tehsil and District Administration along with Competition Commission of Pakistan should ensure fair prices of food items by taking action against profiteers and mafias to facilitate people.

    The meeting was attended by Minister for Planning Asad Umar, Minister for Industries and Production Makhdoom Khusro Bakhtiar, Minister of State for Information and Broadcasting Farrukh Habib, SAPM on Political Communication Dr Shahbaz Gill and senior officers concerned. Finance Minister Shaukat Tareen, Chief Secretary Punjab and Balochistan attended the meeting via video link.

    In the meeting, the Prime Minister stressed that the provision of essential commodities to people at affordable prices is top priority of the government.

    The Prime Minister directed the provincial Chief Secretaries to ensure action against the negligent officers regarding prices.

    The Prime Minister also stressed upon the need to make the existing cell more active in monitoring prices on a regular basis and ensuring their reasonable prices.

  • CCP initiates probe against Foodpanda for discriminatory practices

    CCP initiates probe against Foodpanda for discriminatory practices

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Wednesday said it initiated a probe against the online food delivery service platform/aggregator, Foodpanda, to investigate its alleged abuse of dominant position and possible violation of prevailing laws, in the market of online food delivery platforms.

    The CCP said that the enquiry committee will also review and place before the commission, its findings, whether the exemption granted (for loyalty agreements) to Foodpanda in April 2019 for the period of three years is impeding competition in any manner in light of concerns highlighted by various market players.

    The CCP launched the investigation on the formal complaints filed by Foodpanda’s competitor M/s. Cheetay Logistics Pakistan Limited on May 04, 2021, and the All Pakistan Restaurant Association (APRA) on June 10, 2021. Formerly, a complaint was also filed by another online food aggregator, Careem Networks Pakistan (Private) Limited, pertaining to the exemption granted to same aggregator in 2019.

    The CCP’s Cartel and Trade Abuse Department conducted a preliminary fact-finding exercise and found that Foodpanda seems to have a dominant position in the market of online food delivery platforms with a considerable amount of admitted volume of 100,000 per day food orders from different restaurants/outlets/food chains across the country. Regarding the alleged abuse of dominant position, the concerns include: charging exorbitant commissions; offering fidelity rebates; discriminatory practices; setting out various discounts to exploit participants; and entering into exclusivity with parties through loyalty agreements.

    These concerns stretch the scope of abuse to being a barrier for the new entrants in the market of online food delivery platforms.

    The enquiry committee has already been working on the case, consulting all the concerned parties and seeking relevant information for deliberating the matter objectively, the CCP said.

    Findings of the enquiry upon conclusion will be placed before the commission for its decision.

  • CCP directs DHA to give ROW to Nayatel

    CCP directs DHA to give ROW to Nayatel

    KARACHI: Competition Commission of Pakistan (CCP) on Tuesday directed the management of Defence Housing Authority (DHA) – I Islamabad to provide a level playing field for Nayatel by giving right of way (ROW) to provide its cable internet and telephony services on the same terms and conditions as are being offered to other existing operators.

    The CCP conducted an enquiry after taking a suo motor notice of the complaints and concerns received from the residents of DHA-I Islamabad, stating that had been deprived of an alternate choice of CIT services provider, which was restricted to only two operators i.e. Pakistan Telecommunication Company Limited (PTCL) and DHAI Teleman.

    They alleged that DHA was not letting Nayatel to operate in the area despite the company’s interest to provide its services.

    The ROW is a platform for internet service providers for the provision of CIT services.

    According to the complaints, DHA management had given ROW to PTCL and DHAI Teleman in DHA-1 while denying the same to Nayatel on equal terms and conditions.

    It was alleged that DHA’s management had created a barrier to entry for Nayatel by offering dissimilar conditions and demanding a higher price of ROW that the already existing internet service providers.

    The CCP’s enquiry concluded that DHA management, prima facie, abused its position in violation of Section 3 of the Competition Act, 2010 by not allowing Nayatel to operate in the relevant market and recommended to initiate proceedings against DHA under Section 30 of the Act.

    After hearing the parties, the bench passed the order, in which it applied the ‘essential facility doctrine’ to the matter and observed that in the current era, the CIT services are an essential need for the citizens, both for personal as well as commercial use.

    The order further stated that the residents of DHA-I were demanding CIT services from Nayatel, being a Fiber-to-the-home (FTTH) based CIT service provider, however, DHA-I management, abusing its dominant position, refused to issue an NOC to Nayatel to install its infrastructure within DHA-I Phase-I and other sectors.

    As per the order DHA-I held a dominant position in the relevant market and had already granted ROW to four parties i.e. PTCL, Transworld, Wateen and its very own subsidiary DHAI Teleman for providing (G-PON) and allied CIT services to the residents of DHA-I, the lincensee seeking the ROW was Nayatel.

    The already existing service providers are on cost sharing basis with DHA-I rather than on a revenue sharing basis. The order observes that DHA-I has failed to explain any logic as to why there has been a disparity between the charges offered to Nayatel and other incumbents, which amounts to discrimination and application of dissimilar conditions to the same transaction, under Section 3(I), read with subsection 3(e) of the Act.

    The order also finds support from the directive issued by the ministry of information technology and telecommunications in October 2020, called the “public and private right of way policy directive” which stated that ‘the public authority shall not discriminate any licensee towards charging of right way fee and there shall not be any differential or preferential treatment in right of way fee for any type of licensee including other utility service providers and those wholly or partially owned by the federal or provincial government or the public authority.

    Keeping in view all circumstances and with a view to give a chance to DHA-I to correct its behavior and to offer Nayatel within 90 days from the date of the order to use the ROW on terms and conditions no less favorable than the incumbent service providers.

    The CCP has not imposed any penalty on DHA for now. But in case of non-compliance, DHA-I shall be liable to pay Rs2 million for violating Section 3 of the Competition Act, 2010 in addition to appropriate penalties for non-compliance under Section 38 of the Act.

    DHA-I has been further directed to file a compliance report before the registrar of the commission no later than 7 days from the date such offer is made to Nayatel.

  • CCP issues notices to 19 poultry feed companies for cartelization

    CCP issues notices to 19 poultry feed companies for cartelization

    ISLAMABAD: Competition Commission of Pakistan (CCP) on Tuesday issued show cause notices to 19 poultry feed companies for collusive activities and entering into prohibited agreements.

    A statement issued by the commission stated that it had taken suo motu notice of the concern and complaints regarding a concurrent increase in the feed prices and initiated an enquiry.

    Data gathered from market sources showed that there was indeed a simultaneous increase in price by poultry feed mills and the average quantum of increase in price also appeared to be similar, which raised suspicion of collusive decision making and violation of Section 4 of the Competition Act, 2010.

    The CCP said that from December 2018 to December 2020, the feed mills colluded to raise the poultry feed prices by Rs825 per 50 kilogram bag, thus making feed 32 percent costlier for the poultry farmers. “Moreover, data from the Pakistan Bureau of Statistics (PBS) for September 2020 shows that chicken prices rose by 18.31 percent and eggs by 5.2 percent. The rise in these prices coincided with an increase in feed prices by almost Rs100 per bag.”

    In October 2020, the CCP said, after another price increase by poultry feed mills by Rs125 on layer and 175 on broiler feed, the chicken prices rose by 26.62 percent and eggs by 23.81 percent as compared to the previous month. In November 2020, the poultry feed prices rose again by Rs150 per bag, and the prices of chicken and eggs rose by 20.76 percent and 5.23 percent. In December 2020, another price increase in poultry feed by Rs250 per bag caused prices of chicken and eggs to rise by 3.21 percent and 14.08 percent, respectively.

    Moreover, the CCP said, multiple sources shared the concerns that some of the top poultry feed mills were meeting at different locations and fixing the feed poultry feed prices. Therefore, exercising its powers under Section 34 of the Competition Act, 2010, the CCP on February 04, 2021 carried out search and inspection of two major poultry feed mills based in Rawalpindi and Lahore to impound the proofs of their suspected involvement in collusive activities and collective fixing of poultry feed rates. Two authorized team of the CCP conducted the inspection and successfully impounded the relevant record including computer-stored information.

    “The impounded record revealed that officials of 19 feed mills were using an active WhatsApp group where one feed producer would announce its intended price increase and the rest expressing and sharing their willingness to follow suit.

    “These discussions and decisions were implemented on the ground, as evidenced by the official price lists of these companies.”

    The CCP said that based on the examination and review of the documents/material impounded during the raid, the enquiry report has been concluded.

    According to the enquiry report, from December 2018 to December 2020, the poultry feed mills have acted in a collective manner to fix the price of poultry feed, which constitutes a prima facie violation of Section 4 of the Act.

    Moreover, while poultry feed companies produce the poultry feed which are mostly located in Punjab, the feed is sold/supplied to poultry farms in Sindh and KPK to meet their requirements and therefore given the inter-provincial movement of poultry feed, any anticompetitive effects would have a spillover effect throughout Pakistan.

    The feed companies have been called upon to show cause in writing within 14 days and to appear and place before the commission for hearing. Once the CCP’s bench concludes the hearings, it will pass the order under Section 31 of the Act.

    The CCP said if proven, Section 4 violations entail a penalty of Rs75 million in case of a business association and up to 10 percent of the annual turnover or Rs75 million penalty in case of a company/business entity. The companies against whom proceedings are underway can also compete for leniency (reduction in or waiver of penalty) under the CCPs Leniency Regulations subject to provision of additional substantial information or evidence and acceptance by CCP.

  • CCP discovers monopoly behind massive increase in poultry prices

    CCP discovers monopoly behind massive increase in poultry prices

    ISLAMABAD: The Competition Commission of Pakistan (CCP) has discovered that monopoly of feed mills resulted massive increase in poultry rates at retail state.

    A statement on Friday said that the nineteen poultry feed companies have been involved in price coordination and their alleged anti-competitive conduct has caused poultry feed price rise.

    Poultry feed comprises approximately 75-80  percent of the cost of broiler meat and eggs. Therefore, the hike in feed prices has affected the prices of chicken and eggs, which are the most commonly consumed high protein foods. The CCP’s enquiry revealed that from December 2018 to December 2020, the feed mills colluded to raise the poultry feed prices by Rs. 825 per 50kg bag, thus making the feed 32 percent costlier for the poultry farmers.

    Moreover, data from the Pakistan Bureau of Statistics (PBS) for September 2020 shows that chicken prices rose by 18.31 percent and eggs by 5.2 percent. The rise in these prices coincided with an increase in feed prices by almost Rs. 100 per bag.

    In October 2020, after another price increase by poultry feed mills (by Rs.125 on layer and 175 on broiler feed), the chicken prices rose by 26.62 percent and eggs by 23.81 percent as compared to the previous month. In November 2020, poultry feed prices rose again by Rs. 150 per bag, and in this month, the prices of chicken and eggs rose by 20.76 percent and 5.23 percent. In December 2020, another price increase in poultry feed by Rs.250 per bag caused prices of chicken and eggs to rise by 3.21 percent and 14.08 percent, respectively.

    The CCP took a suo motu notice of the concerns and complaints received, through the PM Citizens Portal and the CCP’s own online complaint management system, alleging that some of the leading mills in the country collusively raised poultry feed prices. The complainants also included poultry farmers whose business were hit by the costlier feed prices.

    In February 2021, the CCP raided two major poultry feed producers and impounded crucial evidence pointing towards price change coordination among the feed companies. The impounded record revealed that officials of 19 feed mills were using an active WhatsApp group where one feed producer would announce its intended price increase and the rest expressing and sharing their willingness to follow suit. Price discussions included the effective date and amount of the rise. These discussions and decisions were implemented on the ground, as evidenced by the official price lists of these companies.

    In a conversation thread from 07 December 2020, feed mills, while discussing price increases on the group, an official of a feed mill states: “Everyone would increase, for sure, but what’s about the exact effective date, please”. In response official of another feed mill says: “Dear all owners want immediately but seems from tomorrow”. Another feed mill representative replies: “surely w.e.f 07-12-2020”. Price lists show that on 7/8 December 2020, mills increased prices by Rs. 250 per 50 kg bag.

    The enquiry also found that mills carried out price changes between December 2018 and December 2020 in a coordinated manner in short intervals at least 11 times. In addition, the data revealed that not only were price revisions made on the exact dates, but the amounts of price change were also similar.

    To illustrate this pattern, on 10 October 2020, the feed mills participating in the WhatsApp group increased prices by Rs. 125 per 50 kg bag for layer and Rs. 175 per 50 kg bag for broiler feeds, on 14th/16 November 2020, by Rs. 150 per 50 kg bag on all feed rations and on 7th/8 December 2020, these mills increased prices by Rs. 250 per 50 kg bag on all rations.

    An analysis of poultry input costs shows that maize, which is the primary component of feed, constitutes 55-60 percent in terms of physical usage in feed, approximately 40 percent of the cost. Maize witnessed a bumper crop in 2020 and was abundantly available.

    Moreover, in FY-2019-20, maize prices fell by 7 percent compared to the previous year and in the first quarter of FY21, were 22  percent lower than 2019-20. On the other hand, soybean meal, another critical raw material, saw higher prices. However, a rise in input prices it has been witnessed cannot be used as a justification to increase feed prices uniformly as each mill has a different cost structure and business model.

    Poultry feed mills are each other’s competitors, and any discussion and coordination on prices is prohibited under Section 4 of the Competition Act, 2010. Accordingly, following the findings of the enquiry report, Show Cause Notices will be issued to poultry feed companies involved in the prima facie violation of Section 4 of the Act.

  • Commission issues notice to Hyundai Nishat Motors for deceptive marketing

    Commission issues notice to Hyundai Nishat Motors for deceptive marketing

    ISLAMABAD: Competition Commission of Pakistan (CCP) has issued a show cause notice to M/s. Hyundai Nisha Motors Pvt Limited for explaining deceptive marketing practice for sale of its new Hyundai Tucson.

    The CCP in a statement issued on Tuesday said that it had taken a suo moto notice of the advertisement published in print media and on various social media platforms publicizing the introductory price of Hyundai Tucson with a disclaimer, ‘for a limited period only.’ In these advertisements, though the introductory price was visibly printed in large font size, yet the disclaimer was not easily noticeable as it was printed much smaller font size.

    Moreover, it was also brought to the CCP;s notice that the initial booking period for Hyundai Tucson with the introductory price lasted for less than 24 hours, and then the price was raised by Rs200,000. Within 24 hours of initial bookings, the company declared that all units of Tucson at the introductory price were booked and the introductory price list was removed from its website, Facebook and Instagram pages.

    The CCP’s Office of Fair Trade (OFT) in its inquiry found that advertisement to be problematic in the position of the disclaimer could potentially mislead the consumers. Moreover, the advertisement left the overall impression that the company did not clearly indicate to consumers: (i) the period in which the introductory pries would apply, and (ii) the number of vehicles that were available at the price point, thereby, prima facie, violating provisions of Section 10 of the Competition Act.

    On the enquiry’s recommendations, a show cause notice has been served on M/s. Hyundai Nishat Motor (Pvt) Limited company and the company has been given 14 days to respond.

    CCP is mandated under the Competition Act to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from deceptive marketing practices.

  • CCP conducts search of APCMA chairman, vice offices; impounds record

    CCP conducts search of APCMA chairman, vice offices; impounds record

    ISLAMABAD: Competition Commission of Pakistan (CCP) has conducted a raid on the office of All Pakistan Cement Manufacturers Association (APCMA) and impounded relevant records. The raid was conducted on possible anti-competitive activities, a statement said on Thursday.

    The CCP said that exercising its powers under Section 34 of the Competition Act 2010, as part of an enquiry launched in May 2020 to investigate the possible anti-competitive activities by the cement manufacturers, carried out a search and inspection of the offices of Chairman and Vice Chairman of APCMA located in Karachi on Thursday.

    Two different teams entered and searched the offices of the Chairman and Vice Chairman of APCMA located in Karachi and impounded the relevant record.

    The enquiry in cement sector was started based on the information gathered through various media reports, and concerns and complaints expressed regarding a concurrent increase in cement prices, particularly during the month of April 2020.

    The reports indicated that an increase ranging between Rs. 45 – Rs55 per cement bag was apparently collectively decided in a meeting of the cement manufacturers held under the umbrella of APCMA.

    On September 24, 2020, the CCP had conducted search and inspection of the APCMA main office and the office of Senior Vice Chairman of the APCMA’s Executive Committee; a senior employee of a major cement company in Lahore.

    Moreover, the impounded record, including Whatsapp messages and emails, warranted conducting search and inspection in the South Zone as well for obtaining evidence relating to anticompetitive practices.

    The evidence suggests possibility of a cartel/collusive arrangement between the cement manufacturers.

    It is pertinent to mention that various factors among others lower demand of cement in the first two quarters of 2020, and almost parallel increase in cement prices and data collected from Pakistan Bureau Statistics and the cement companies, became the basis of CCP’s enquiry and the earlier search.

    Sudden rise in price by the cement manufacturers at a time when there is low demand compared to the installed capacity of the manufactures and considering that input fuel cost (coal and oil), transportation and interest rate have declined raises suspicion of a collective rise in price by cement companies.

    It is pertinent to mention here that the cement sector has a history of collusive activities and they have been penalized in the past to an amount of collectively more than Rs. 6.3 billion on account of forming a cartel and involvement in the prohibited agreements in violation of Section 04 of the Act.

    In 2012 the Commission again initiated enquiry against cement companies, however the same could not be proceeded and concluded due to stay order granted to cement companies by the Lahore High Court. The current enquiry was initiated in 2020.

    Related Stories

    PSMA, 84 sugar mills served show cause notices for cartelization
    Competition Commission approves 59 mergers, acquisitions in 2019/2020
  • PSMA, 84 sugar mills served show cause notices for cartelization

    PSMA, 84 sugar mills served show cause notices for cartelization

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Tuesday said it issued show cause notices to 84 sugar mills and their association for cartelization.

    The CCP said that it had issued show cause notices to Pakistan Sugar Mills Association (PSMA) and its 84 member mills on multiple instances of prima facie cartelization in violation of Section 4 of the Competition Act, 2010.

    The show cause notices have been issued after the CCP decided to initiate proceedings under Section 30 of the Act on the recommendations of an enquiry into the anti-competitive activities in the sugar sector.

    The CCP’s enquiry has found multiple instances where the Pakistan Sugar Mills Association (PSMA) is acting as a front-runner for cartelization in the sugar industry.

    “Evidence gathered during search and inspections conducted on the premises of PSMA and JDW Sugar Mills seems to suggest these anti-competitive activities have continued since 2010.”

    The impounded data included exchange of emails between a senior official of one of the Sugar Mill (Member of PSMA) and PSMA Punjab zone office bearers regarding sensitive commercial information such as mill-wise, district-wise sugar stock position, and even the quantity of cane crushed, sugar produced, recovery percentage, carry forward old/raw sugar, total sugar, quantity sold, balance and sold percentage.

    “Moreover, an analysis of the WhatsApp messages exchanged in a group of PSMA officials, the same senior official of that Sugar Mill was found to be in constant communication with regard to price and stock related data of sugar mills.

    “The impounded data indicated the senior official’s continued involvement in sharing/receiving sensitive information regarding sugar industry since 2012 when he was nominated as the focal person for coordinating the sugar stock position by PSMA,” the CCP said.

    Furthermore, the PSMA’s platform was also being used by member sugar mills to collectively make commercially sensitive decisions such as reduction in domestic stocks/supplies of sugar, which led to an increase in or maintenance of desired price levels in the relevant market.

    PSMA and its members have been provided an opportunity of hearing to plead their case with reference to the prima facie specific violations indicated therein.

    PSMA and all 84 sugar mills prima facie violated the Act by collectively deciding to export sugar and thereby fixing the quantities of sugar to be supplied in Pakistan.

    Similarly, they also violated the Act by reducing stocks of sugar through exports; hence collectively raised and maintained prices of sugar in Pakistan.

    Moreover, in the crushing season 2019-20, 15 sugar mills in Punjab under the auspices of PSMA, collectively decided to delay crushing of sugarcane leading to reduction in quantity supplied in the market.

    In Punjab, 45 sugar mills used PSMA’s platform to share business sensitive information with each other.

    Lastly, PSMA and sugar mills divided quantities of sugar in tenders issued by USC on various occasions.

    “The CCP found 19 mills in Punjab to have violated the Act with reference to a tender dated 2019 whereas, 30 mills from all over Pakistan have been issued show cause for an earlier tender.”

    The findings of CCP’s previous sugar enquiry report in 2009 had found that PSMA and its members had engaged in fixing of prices and collusion in the purchase of sugarcane, production of sugar, and sale or trade of sugar.

    In the instant matter it appears that PSMA and its member mills sought to keep prices stable, inter alia, by controlling supply of sugar available in the domestic market.

  • CCP raids cement manufacturers association for possible cartelization

    CCP raids cement manufacturers association for possible cartelization

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Thursday raided the central office of All Pakistan Cement Manufacturers Association (APCMA) and seized suspicious record.

    In a statement the CCP said that as part of an enquiry launched in May 2020 to investigate the possible anti-competitive activities by the cement manufacturers, carried out a search and inspection of the APCMA in Lahore on Thursday.

    It said that two different teams entered and searched the APCMA main office and a member of APCMA. “Since a senior employee of one of major cement company is also the office bearer of the APCMA’s Executive Committee, representing the north region, therefore, the commission also conducted search and inspection of the premises of member concern with the objective to gather evidence of any collusive arrangement for the purposes of the Act,” it added.

    The CCP said that the enquiry was started based on the information gathered through various media reports, and concerns and complaints expressed regarding a concurrent increase in cement prices, particularly during the month of April 2020.

    The reports indicating that an increase of Rs45 – Rs55 per cement bag was apparently decided in a meeting of the cement manufacturers held under the umbrella of APCMA. Some of the media reports also quoted cement dealers saying that the leading cement companies in the north region had collectively decided to increase the cement prices by Rs55 per bag.

    From the analysis done by the CCP’s enquiry officers to see the cement companies’ profitability trend, it transpired that due to the lower demand of cement in the first quarter of 2020, the companies had to undergo financial losses at variance, however, the increase in price was starkly parallel, raising concerns of collective decision making and price fixing by the cement manufacturers.

    “Some of the players of the construction industry also hinted upon the cement cartel in the North Region becoming active following price increase trend in northern region.”

    The official data available with the CCP indicated the cement price increase of 4 percent in Islamabad, 10 percent in Lahore, and 6 percent in Peshawar from the second week of April 2020.

    From analysis of the information obtained from the news reports, price trends and facts gathered pertaining the same, it appears that objective basis, if any, needed to be assessed and / or the correlation between increase in the price of cement and grounds presented by the representatives of cement industry.

    Sudden rise in price by the cement manufacturers at the time when there is low demand compared to the installed capacity of the manufacturers at a time when there is low demand compared to the installed capacity of manufacturers and considering the input fuel cost (coal and oil), transportation and interest rate have declined raises suspicion of a collective rise in price by cement companies.

    It may be noted that the production capacity of cement sector has increased from 44 million tons in 2014 to 69 million tons in 2020. The losses incurred by the cement sector and increase in the price of cement in a similar time period raises suspicion of collective decision of the cement companies to recover losses incurred due unutilized installed capacities.

    The CCP said that the cement sector has history of collusive activities and they have been penalized in the past to an amount of collectively more than Rs6.3 billion on account of involvement in the prohibited agreement in violation of Section 04 of the Act.

    In 2012 the commission again initiated enquiry against cement companies, however, the same could not be proceeded further due to stay order granted to cement companies by the Lahore High Court.

    The CCP said that the latest search had been carried out to gather the evidence of possible communication, arrangement, agreement, or understanding between the cement producers pertaining to the violation of the provisions of the Competition Act, 2010.

  • Competition Commission approves 59 mergers, acquisitions in 2019/2020

    Competition Commission approves 59 mergers, acquisitions in 2019/2020

    ISLAMABAD: The Competition Commission of Pakistan (CCP) has processed and granted approval to 59 merger and acquisition applications during fiscal year 2019-2020, against the annual target of 50, showing the CCP’s promising performance to facilitate the local and foreign investors despite the limitations caused by COVID-19 pandemic.

    A statement issued on Thursday out of the total 59 approvals, 51 were acquisitions, 5 mergers and 3 joint ventures applications.

    The major sectors where these mergers and acquisitions took place include automotive, household products, food, sugar, oil, power, freight, LNG, insurance, agriculture, coal mining, logistics, pharmaceutical, chemicals, petroleum, healthcare, leasing, plastics, textile, hospitality, financial services, digital payments, mobile phone, investment, IT-Hardware, wind power, and microfinance banking.

    Moreover, the CCP also processed and granted Exemptions to 43 undertakings under the Section 5 of Competition Act, 2010.

    CCP grants exemptions to notified agreements between companies from the prohibition of Section 4 of the Competition Act, on the basis of an individual assessment.

    Restrictive agreements qualify for exemption if their benefits to general welfare (product improvement, technical or economic progress, benefits to consumer) outweigh their restrictive effects on competition.

    During the outgoing fiscal year, the CCP complete 14 inquiries, issued 78 Show cause notices, and passed 15 orders. An important enquiry was concluded In the matter of alleged bid rigging in the tenders issued by Power Distributions companies for the procurement of Line Hardware material.

    Similarly, the CCP issued to the Pakistan Sugar Mills Association and its member sugar mills in 2009 for cartelization.

    These sugar mills had not challenged the CCP’s show cause notices, but legal action had not been started against them in the past.

    Even in the challenging time of COVID-19 pandemic, the CCP ensured its smooth functioning by extending facilitation to the stakeholders. An Online Merger and Acquisition Application filing system was launched to facilitate the local and foreign investors in filing merger applications online.

    Furthermore, to ensure health and safety of the respondents amid COVID-19, the parties have been allowed to respond the show-cause notices issued to them in the hearings using video conference and other online tools.

    An online application for granting exemptions has also been prepared and will be launched soon.

    The CCP issued a Policy Note to the Securities & Exchange Commission of Pakistan (SECP) asking for an immediate reinstatement of the cost audit of companies (particularly Cement, Sugar, Vegetable Ghee/Cooking Oil, Fertilizers, and Wheat flour companies), so that credible and verified cost information is available to assist in factual (rather than speculative) policy making.

    In order to curb the bid rigging in tenders and public procurements, the CCP has prepared an in-house IT-based Bid Rigging Analysis and Detection (BRAD) system to help detect signs of collusion in the bidding process.

    On the legal front, the Islamabad and Lahore High Courts have resumed hearings in the cases wherein the CCP’s constitutionality has been challenged by the undertakings. The government, through the Attorney General of Pakistan, has been extending full support to the CCP in resolving the pending issues.

    Certain other recent initiative include initiation of online webinars to help educate the business and consumers around Competition Law; launch of draft study on the Competition Concerns in the LPG Sector; and working on the State of Competition report after a pause of 10 years.