ISLAMABAD, JULY21: The Competition Commission of Pakistan (CCP) found M/s Reliance Paints Pakistan guilty of fixing the retail pricing of its goods in violation of Section 4 of the Competition Act, 2010; this verdict was affirmed by the Competition Appellate Tribunal.
After receiving an official complaint from Akzo Nobel Pakistan Ltd., which claimed that Reliance Paint was setting the minimum resale price for its goods and punishing dealers, distributors, and retailers for breaking its price guidelines, the CCP opened an investigation.
According to the CCP’s probe report, these tactics were limiting competition not just between dealers and retailers but also between Reliance and its rivals because dealers were unable to provide customers discounts on Reliance’s products and the retail pricing became rigid.
The Commission noted that Reliance Paints’ enforced agreements and arrangements limited intra-brand competition among its dealers, distributors, and retailers, which hinders their capacity to competitively bid on Reliance Paint’s products. As a result, Reliance Paints was fined Rs. 5 million by the CCP.
Reliance Paints filed an appeal with the Competition Appellate Tribunal challenging the CCP’s ruling. The Commission’s conclusions about Reliance Paint’s infringement of Section 4 of the Act were affirmed by the Tribunal. Still, The fine was lowered to Rs. 2.5 million.
