Anti-cartel watchdog imposes Rs12.9b in fines

‘CCP has taken punitive action against cartelisation in Pakistan’.


December 15, 2012

ISLAMABAD: The pro-competition watchdog has imposed a total of Rs12.9 billion fines against firms who adopted anti-competitive approaches.

Minister of State for Finance Saleem Mandviwala on Friday informed the members of the Upper House of Parliament that the Competition Commission of Pakistan (CCP) had taken punitive action against cartelisation in the country.

Responding to a supplementary question by Colonel (retd) Tahir Hussain Mashhadi, the state minister said that a fine of Rs6.5 billion had been imposed against the cement manufacturers for increasing prices of cement without any valid reason through cartelisation. He said due to CCP’s actions, prices of the cement had decreased.

“Likewise, the CCP imposed a fine of Rs6.3 billion against jute millers while an Rs50 million fine had been imposed on ghee mills for increasing prices of the commodities without any rationale. Moreover, a fine of Rs50 million had been imposed on automated teller machines body for fleecing consumers and following the fine, different banks had decided to drop charges rate against consumers,” he added. He said that poultry associations have been penalised also.

In a written reply, the finance minister said that the CCP is required to ensure free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behaviour. “Under the Competition Act, CCP as part of its statutory obligation may investigate and penalise undertakings for entering into prohibiting agreements (cartelisation) which have the object or effect of preventing, restricting or reducing competition within the relevant market and restrict free trading and competition between business entities.”

Published in The Express Tribune, December 15th, 2012.

COMMENTS (2)

Zain | 11 years ago | Reply

The CCP should also go after the automobile assemblers cartel mafia. They keep raising the prices of the cars assembled, which are now costing 2 to 3 times more than the equivalent models on international market. All 3 big ones, Pak Suzuki, Indus Toyota and Atlas Honda are guilty of forming a powerful cartel. The car assembly quality is also not good. They need to punish the mafia, and allow import of 10 year old cars or brand new with no duties, or atleast allow the joint venture with Chinese or even Indian automakers. New competition is always good, it gets rid of the mafia who are bent on making profits for themselves without making any re-investment and localization. Currently there is no car being made with 100% local parts. Even the oldest suzuki models only use 60% to 70% local parts at most.

Usman786 | 11 years ago | Reply

When are you imposing fine on CNG station owners? are they really paying employees at the rate claimed

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