The All Pakistan Cement Manufacturers Association (APCMA) has filed an appeal with the Competition Appellate Tribunal, seeking the cancellation of Rs6.35 billion penalty imposed by the Competition Commission of Pakistan (CCP) on the APCMA and cement companies in a case pertaining to alleged price fixing and collusion.
The tribunal heard the case on Thursday, where Rashid Anwar, the counsel representing the APCMA, presented his arguments and dismissed the allegations.
He emphasised that there was a competitive landscape within the cement sector, characterised by differing prices. He described the CCP's decision against cement companies as unjust and pointed out that the commission had also imposed a notable fine on cement firms in 2009, when they were incurring losses.
Anwar argued that the CCP did not conduct a proper geographical analysis of the companies and the quota-sharing agreement between the companies had been signed in 2003 for two years only, which expired by the time the commission's decision came.
He contended that the CCP did not have reasonable grounds to raid the offices of the APCMA and its member companies. He requested the tribunal to invalidate the CCP decision.
The tribunal adjourned the hearing until May 22 following the conclusion of APCMA counsel's arguments. At the next hearing, the counsel representing different cement firms will put forth their arguments. Once they conclude, the CCP's legal representatives will defend the commission's ruling.
Earlier, the CCP had found evidence of agreements and collusion concerning the cement price determination and involving the APCMA. Following a comprehensive probe, the CCP slapped a fine of Rs6.35 billion on 20 cement manufacturers and the APCMA.
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