ISLAMABAD: The Competition Appellate Tribunal has upheld the Competition Commission of Pakistan’s (CCP) findings against leading household appliance manufacturers for engaging in resale price maintenance (RPM), a form of price fixing prohibited under the Competition Act, 2010.
While the Tribunal maintained the contravention established by the CCP, it reduced the monetary penalty to Rs90 million. The companies have been directed to deposit the revised amount within 30 days.
The CCP had earlier penalised the companies after determining that they had imposed restrictive pricing policies on their dealers—prohibiting sales below certain price points, disallowing discounts, and banning package offers. Such practices were found to be anti-competitive and detrimental to consumer welfare.
Before the Tribunal, the companies did not contest the CCP’s findings of violation. Instead, they sought relief on the penalty amount, citing corrective measures. According to the Tribunal, the companies had refunded dealers the sums previously collected under the RPM policy and provided undertakings of future compliance with competition laws.
Taking into account these mitigating steps—including restitution and cooperation—the Tribunal opted for a reduced penalty while warning that such conduct would remain under scrutiny.
The CCP, in response to the verdict, reiterated its call for businesses to avoid RPM and other anti-competitive practices, including imposing discount restrictions or fixing resale prices. The Commission warned that such conduct constitutes a serious breach of competition law and undermines market dynamics.
