ISLAMABAD, August 7: The Competition Commission of Pakistan (CCP) has received a total amount of PKR 90 million from two electronic home appliance brands, paid against the penalties imposed for engaging in anti-competitive conduct.
The penalties were imposed after the CCP concluded that both companies had violated competition law by restricting their dealers from selling products below specified prices, offering discounts, or providing package deals—practices that limited price competition in the market. Although the companies challenged the CCP’s order before the Competition Appellate Tribunal (CAT), the Tribunal upheld the Commission’s findings and directed the companies to deposit the penalty amount within 30 days.
The CCP reiterates its warning to all undertakings to refrain from price-fixing practices, including setting minimum or maximum resale prices and placing restrictions on discounts or promotional offers. Such conduct constitutes a serious infringement of the Competition Act, 2010, and undermines free market competition.
The CCP emphasized that RPM agreements, including setting minimum or maximum resale prices and curbing discounts, constitute serious violations of competition law. The commission urged all businesses to refrain from such practices to ensure a competitive market environment that benefits consumers.
This ruling follows a history of CCP enforcement against the home appliances sector. In 2022, the CCP imposed a PKR 1.1 billion fine on two major firms, Haier and DEL/Dawlance, for similar RPM violations. Haier faced a PKR 1 billion penalty, while DEL/Dawlance was fined PKR 100 million, reflecting differences in their cooperation during proceedings. The CCP’s consistent actions highlight its commitment to curbing anti-competitive behavior and protecting consumer welfare.
The successful recovery of the PKR 90 million fine aligns with the CCP’s broader efforts to reduce its legal backlog and strengthen enforcement, with over 223 cases resolved and PKR 360 million recovered in penalties since August 2023. The commission continues to advocate for fair market practices, reinforcing Pakistan’s competition law framework.
