The All Pakistan Cement Manufacturers Association (APCMA) has approached the Competition Appellate Tribunal (CAT), seeking the annulment of a Rs 6.35 billion penalty imposed by the Competition Commission of Pakistan (CCP) over alleged price fixing and collusion within the cement sector, according to media reports.
During a hearing on Thursday, APCMA’s legal counsel presented his defense, asserting that the cement industry operates in a competitive environment, marked by varying prices. He contested the CCP’s decision, which had previously fined cement companies in 2009 despite their financial losses at the time.
The counsel pointed out that the CCP had failed to conduct a proper geographical analysis of the cement industry and argued that the quota-sharing agreement among cement firms, signed in 2003 for a two-year period, had already expired by the time the Commission made its ruling.
He also challenged the CCP’s actions in raiding the offices of APCMA and its member companies, stating that there were no legitimate grounds for such actions. Anwar called for the tribunal to overturn the CCP’s decision.
The tribunal, after hearing the initial arguments, adjourned the case to May 22, when attorneys representing various cement firms, including former Attorney General Khalid Javed Khan, Yousuf Khosa, and Shahbaz Khosa, will present their defense. The CCP’s legal team will then respond to the claims made by the cement industry.
In 2009, the CCP found evidence suggesting that APCMA and its member companies were involved in agreements related to cement price determination, raising concerns of collusion in the market.
