CCP Intensifies Efforts To Promote Fair Competition

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Mar, 2025) The Competition Commission of Pakistan (CCP) has made substantial progress in its efforts to promote fair competition, dismantle cartels, and enhance market transparency across the economy.

Under the leadership of its newly appointed chairman, Dr. Kabir Sidhu, the CCP has refocused on resolving legal backlogs, strengthening its enforcement framework, and implementing proactive reforms that are reshaping the competitive landscape in Pakistan.

A top priority for the CCP has been resolving long-pending legal cases, according to data issued by CCP here on Monday.

By submitting early hearing applications in the Competition Appellate Tribunal (CAT) and High Courts, the Commission has made strides in clearing its backlog.

So far, 46 cases have been dismissed in favor of the CCP by the CAT, while additional cases have been resolved by the Lahore and Islamabad High Courts.

These cases, which addressed violations such as cartelization, abuse of dominant market position, and deceptive marketing, represent a significant victory for the Commission.

The courts’ decisions to uphold CCP’s orders and penalties reinforce its authority, ensuring that businesses are held accountable for anti-competitive practices.

To expedite case resolutions, the CCP has overhauled its legal team, bringing in highly experienced lawyers.

This restructuring has significantly reduced the Commission’s dependence on external legal counsel, cutting costs while improving the efficiency of legal proceedings.

With a stronger in-house team, the CCP is now better equipped to handle the enforcement of competition laws across the country.

In last one year, the CCP imposed Rs275 million in penalties on businesses involved in cartelization, collusion, and deceptive marketing in sectors such as paint manufacturing, pharmaceuticals, dairy, and fast-moving consumer goods (FMCG).

The Commission also issued 32 show-cause notices to firms in fertilizer, real estate, education, public procurement, telecom, and power distribution for violating competition laws. The CCP successfully resolved 73 court cases,recovered over Rs100 million in penalties through legal action, marking its highest-ever recovery since inception.

Notable cases involved wheat flour cartels, energy sector collusion, deceptive FMCG marketing, and steel industry price-fixing.

The CCP’s Market Intelligence Unit (MIU), established by Dr. Sidhu has proven instrumental in identifying over 125 instances of market manipulation.

By leveraging advanced data analytics and monitoring tools, the MIU enables the CCP to detect anti-competitive activities before they cause economic harm.

Recognizing the role of public cooperation, the CCP has introduced a whistleblower reward program encouraging individuals to report collusion, price-fixing, or market manipulation. Verified informants will receive rewards between Rs200,000 and Rs2,000,000, with full confidentiality assured.

This new approach signals a stronger commitment to protecting consumer rights and ensuring that businesses compete fairly in the market.

The CCP continues to be active in enforcing competition laws, recently concluding 10 major inquiries under Sections 3 and 4 of the Competition Act.

These include cases of price fixing by the Pakistan Flour Mills Association and refusal-to-deal violations by the Pakistan Film Producers Association. Additionally, eight inquiries under Section 10 have been completed, addressing issues related to deceptive marketing.

In the area of mergers and acquisitions, the CCP has issued 65 Phase-I and one Phase-II orders across sectors such as banking, insurance, logistics, and health. The smooth processing of these applications has attracted PKR 29 billion in Foreign Direct Investment (FDI), creating jobs and contributing to Pakistan’s economic growth.

As part of its broader mission, the CCP has conducted four research studies under the IMF’s Public Investment Management Assessment (PIMA) Action Plan. These studies have assessed competition in key markets like power, road construction, insurance, and LNG, providing critical insights into how competition can be enhanced in these sectors.

On the international front, the CCP has strengthened ties with countries such as China, Russia, and South Korea, signing Memoranda of Understanding (MoUs) to enhance coordination and information sharing on competition-related issues.

The Competition Commission of Pakistan (CCP) is proactively ensuring a fair and competitive market, benefiting both consumers and businesses.

By cracking down on cartels, deceptive marketing, and anti-competitive practices, the CCP is fostering an environment where fair prices, better product quality, and greater choice are accessible to consumers.

At the same time, its transparent enforcement and pro-market policies are boosting investor confidence and attracting private investment, driving economic growth and innovation.