Monday, December 29, 2025

CCP wraps up 2025 with over Rs2 billion in fines against cartels in key sectors

Fines total Rs2.1bn, including Rs1.56bn on steel mills, Rs375m on fertiliser firms, Rs155m on poultry hatcheries and Rs10m on transport associations

The Competition Commission of Pakistan (CCP) took strong enforcement action in 2025 against cartelisation, price-fixing and other anti-competitive practices across key sectors, including sugar, steel, poultry, fertiliser, education, transport, advertising, power supply and manufacturing, to protect consumers and ensure fair markets.

In the sugar sector, the CCP issued show-cause notices to ten sugar mills in Punjab for colluding on the start of the crushing season and fixing the sugarcane procurement price at Rs400 per maund. The commission found that the mills jointly decided to delay crushing during a meeting held on November 10, 2025, in violation of Section 4 of the Competition Act, 2010, according to a press release issued by the CCP on Sunday.

In a major enforcement action, the CCP imposed heavy penalties on Aisha Steel Mills Limited and International Steels Limited for cartelisation and price-fixing. Aisha Steel Mills was fined Rs648 million, while International Steels was penalised Rs914 million. The inquiry found coordinated pricing, exchange of sensitive information and an average steel price increase of 111% over three years.

To protect parents and students, the CCP issued show-cause notices to 17 major private school systems for abusing their dominant position by forcing parents to purchase expensive logo-branded notebooks, workbooks and uniforms from selected vendors.

In the poultry sector, the CCP imposed a collective fine of Rs155 million on eight major poultry hatcheries for cartelisation and price-fixing of day-old broiler chicks, which contributed to higher poultry prices.

In the fertiliser sector, the CCP imposed penalties of Rs50 million each on six major urea manufacturers and Rs75 million on a leading industry association, totalling Rs375 million, for coordinated conduct that restricted competition.

The CCP also fined the Transporters of Goods Association and the Local Goods Transport Association Rs5 million each for rate-fixing through collective decisions that restricted independent pricing by transporters.

Strong enforcement actions were also taken through raids and inspections. The CCP conducted raids in Lahore on entities linked to cartelisation in the out-of-home advertising market over alleged price-fixing and bid coordination. Similar raids were carried out on suppliers involved in transformer reclamation materials for power distribution companies over suspected bid-rigging.

In Gujrat, the CCP conducted search and inspection operations at the premises of two electric fan manufacturers and their industry association over suspected cartelisation and price-fixing, securing documents and digital evidence.

Significant progress was also made on the litigation front, as the Competition Appellate Tribunal (CAT) upheld key cartelisation cases. The CAT disposed of the long-pending Pakistan Poultry Association cartel case, upheld the CCP’s findings and ordered recovery of a reduced penalty of Rs25 million.

The tribunal also upheld the CCP’s order against the Pakistan Flour Mills Association for fixing wheat flour prices and directed payment of a Rs35 million fine. In the poultry sector, the CAT admitted and fixed for hearing the appeals of eight hatcheries fined Rs155 million for cartelisation in day-old chick prices, while attempts to stall the proceedings were rejected by the Lahore High Court.

Through these actions in 2025, the CCP reinforced its zero-tolerance approach to cartelisation and its commitment to fair, transparent and competitive markets.

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