Latest news with #CompetitionCommissionofPakistan
Business Recorder
10-06-2025
- Business
- Business Recorder
CCP grants two conditional exemptions to undertakings in transport, logistics sector
ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted two conditional exemptions to undertakings in the transport and logistics sector, permitting limited restrictive provisions under joint venture agreements aimed at strengthening Pakistan's logistics capabilities. The exemptions were approved following a comprehensive review by CCP's Exemptions Department, which assessed the legal framework, potential market impact, and the long-term investment plans associated with the proposed collaborations. These arrangements were found to satisfy the requirements set out in Section 9 of the Competition Act, 2010. The joint ventures are expected to foster technical progress, enhance operational efficiency, and improve service standards in the logistics and freight sectors. The Commission observed that the joint ventures will leverage international best practices alongside local expertise, contributing to infrastructure development, innovation, and greater consumer value. Specific provisions within the shareholders' agreements—such as non-compete and exclusivity clauses—were conditionally approved to ensure investment protection and coordination, while safeguarding against risks of market foreclosure. These approvals reaffirm CCP's commitment to facilitating strategic business collaboration that supports economic growth, while ensuring that competition remains open, fair, and free from abuse of dominance. All exemptions are subject to strict compliance with conditions designed to preserve competitive dynamics in the market. Copyright Business Recorder, 2025
Business Recorder
09-06-2025
- Business
- Business Recorder
CCP grants exemptions to logistics and transport sector
The Competition Commission of Pakistan (CCP) has granted two conditional exemptions to undertakings in the transport and logistics sector, permitting limited restrictive provisions under joint venture agreements aimed at strengthening Pakistan's logistics capabilities. According to a press statement released on Monday, the exemptions were approved following a comprehensive review by CCP's Exemptions Department, which assessed the legal framework, potential market impact, and the long-term investment plans associated with the proposed collaborations. 'These arrangements were found to satisfy the requirements set out in Section 9 of the Competition Act, 2010. The joint ventures are expected to foster technical progress, enhance operational efficiency, and improve service standards in the logistics and freight sectors,' read the statement. CCP grants six exemptions to pharma sector CCP observed that the joint ventures will leverage international best practices alongside local expertise, contributing to infrastructure development, innovation, and greater consumer value. Specific provisions within the shareholders' agreements—such as non-compete and exclusivity clauses—were conditionally approved to ensure investment protection and coordination, while safeguarding against risks of market foreclosure. These approvals reaffirm CCP's commitment to facilitating strategic business collaboration that supports economic growth, while ensuring that competition remains open, fair, and free from abuse of dominance, said CCP. 'All exemptions are subject to strict compliance with conditions designed to preserve competitive dynamics in the market,' read the statement.
Business Recorder
06-06-2025
- Business
- Business Recorder
Pharmaceutical sector: CCP grants six exemptions to undertakings for FY2024–25
ISLAMABAD: In line with its mandate to promote fair competition and protect consumer welfare, the Competition Commission of Pakistan (CCP) has granted six exemptions to undertakings in the pharmaceutical sector for the fiscal year 2024–25, under Section 5 of the Competition Act, 2010. These exemptions relate to specific restrictive clauses in commercial agreements — such as territorial exclusivity and non-compete provisions that would ordinarily be considered anti-competitive under Section 4 (Prohibited Agreements) of the Act. However, after conducting rigorous due diligence, including a detailed assessment of market structures, sector-specific regulations, and the commercial terms of the agreements, CCP determined that the arrangements in question contribute to production efficiency, technological advancement, and enhanced consumer access to critical pharmaceutical products. The Commission noted that these exemptions are expected to improve service delivery, increase the availability of medicines in underserved regions, and lead to better public health outcomes. Consumers stand to benefit from access to advanced pharmaceutical technologies, more reliable product information, and higher standards of service. Each exemption was granted for a specific duration and is subject to conditions that ensure the pro-competitive benefits clearly outweigh any potential adverse effects on competition. Importantly, the undertakings are required to avoid any form of price-fixing or collusive conduct, and pricing arrangements remain outside the scope of these exemptions. The pharmaceutical sector remains a priority area for CCP's exemption regime, with the Commission maintaining close coordination with relevant health regulators to ensure that such decisions serve the broader public interest. Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
CCP grants six exemptions to pharma sector
The Competition Commission of Pakistan (CCP) has granted six exemptions to undertakings in the pharmaceutical sector for the fiscal year 2024–25, under Section 5 of the Competition Act, 2010, read a press statement on Thursday. These exemptions relate to specific restrictive clauses in commercial agreements—such as territorial exclusivity and non-compete provisions—that would ordinarily be considered anti-competitive under Section 4 (Prohibited Agreements) of the Act, CCP said. However, after conducting rigorous due diligence, including a detailed assessment of market structures, sector-specific regulations, and the commercial terms of the agreements, CCP determined that the arrangements in question contribute to production efficiency, technological advancement, and enhanced consumer access to critical pharmaceutical products. The commission noted that these exemptions are expected to improve service delivery, increase the availability of medicines in underserved regions, and lead to better public health outcomes. 'Consumers stand to benefit from access to advanced pharmaceutical technologies, more reliable product information, and higher standards of service,' it said. The commission informed that each exemption was granted for a specific duration and is subject to conditions that ensure the pro-competitive benefits clearly outweigh any potential adverse effects on competition. 'Importantly, the undertakings are required to avoid any form of price-fixing or collusive conduct, and pricing arrangements remain outside the scope of these exemptions,' the commission stated. On Wednesday, the federal government, in an effort to boost pharmaceutical exports, announced the establishment of an empowered Pharma Export Promotion Council, PharmEx Pakistan, under the Trade Development Authority of Pakistan.
Express Tribune
04-06-2025
- Business
- Express Tribune
Fertiliser firms fined for price fixing
Listen to article The Competition Commission of Pakistan (CCP) has cracked down on alleged collusion in the fertiliser sector, imposing Rs375 million in penalties for creating a monopoly and extracting billions from farmers. In response, the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC) has announced it will challenge the CCP order in court. Interestingly, these fertiliser barons had previously refused to pay multi-billion rupee dues on account of the Gas Infrastructure Development Cess (GIDC), instead obtaining stay orders from the courts. They had collected billions from farmers but failed to deposit these funds in the national exchequer — a matter that remains unresolved. The CCP, a watchdog for anti-competitive practices, launched a suo motu inquiry and imposed a penalty of Rs50 million on each of the six major urea manufacturers, along with a Rs75 million fine on FMPAC, totalling Rs375 million. The penalised companies include Fatima Fertiliser Limited, Fauji Fertiliser Company Limited, Fauji Fertiliser Bin Qasim Limited, Fatima Fertiliser Company Limited, Engro Fertiliser Company Limited, and Agritech Limited. According to the CCP's findings, these firms, in coordination with their trade association FMPAC, ran an 'awareness campaign' that effectively amounted to fixing urea prices nationwide. The Bench, comprising Dr Kabir Ahmed Sidhu and Salam Amin, concluded that this activity violated Section 4 of the Competition Act, 2010. While the manufacturers claimed to be setting prices independently, they failed to justify the remarkably synchronised pricing strategy. The CCP investigation revealed that the practice distorted competition and harmed farmers — particularly during the critical Rabi and Kharif seasons — by artificially inflating fertiliser prices and limiting market choices. The companies' attempt to shield themselves under the 'state action doctrine' was also dismissed. The CCP Bench found no formal government directive, or compulsion, to justify their collusive behaviour. Instead, the firms exploited a government instruction about raising awareness among farmers regarding urea prices. They used this as cover to jointly announce uniform urea prices across the country. The bench held that such "actions, taken under the pretext of complying with government instructions, effectively undermined market dynamics and distorted competitive pricing mechanisms." The CCP expressed concern that despite differences in input costs, economies of scale, market size, and gas prices, all six companies were selling a urea bag for the identical price of Rs1,768. The bench remarked that in a market where each company's production capacity and market share are publicly known, such coordinated disclosures cannot be viewed as incidental or competitively benign. Rather, the joint announcement amounted to overt collusion. Repeated directives from the Fertiliser Review Committee (FRC) also went unheeded, with companies failing to address supply imbalances. Notably, the CCP had earlier warned fertiliser manufacturers and FMPAC in 2010, 2012, and 2014warnings that did not lead to lasting change. The CCP chairman reiterated that trade associations should not serve as platforms for sharing price-sensitive information or coordinating pricing strategies. The Commission reaffirmed its commitment to ensuring competitive markets, protecting consumer welfare, and holding violators accountable. In response to the CCP's order, FMPAC issued a statement asserting it had no role in pricing decisions. It clarified that it does not determine or coordinate the pricing of urea or any other fertiliser product. As a non-commercial advisory body, FMPAC claimed it has never engaged in price-setting activities, and any implication otherwise is factually incorrect. FMPAC stated that the controversial advertisement was published under a formal directive from the federal government, communicated via the Fertiliser Review Committee (FRC). During the FRC's meeting on November 25, 2021 — held amid concerns about urea hoarding and market manipulation — it was resolved to initiate a public awareness campaign. FMPAC was directed to publicise the prevailing market price, which had already been acknowledged during the proceedings. FMPAC insisted that it acted in good faith to implement the government's directive, without involvement in setting or proposing the published price. The intent, it said, was to ensure transparency and protect farmers from exploitative practices — not to distort market dynamics. FMPAC plans to contest the CCP's interpretation and pursue legal remedy through the appropriate appellate forum. The Council expressed confidence that a fair and comprehensive review would confirm its actions were lawful and transparent.
