CCP recovers Rs40 million penalty from UDPL, IBL over anti-competitive agreement

The Competition Commission of Pakistan (CCP) has recovered a combined penalty of Rs40 million from United Distributors Pakistan Limited and International Brands (Private) Limited for entering into an anti-competitive agreement.

The recovery follows a decision by the Competition Appellate Tribunal, which upheld the regulator’s findings that the agreement constituted a prohibited market-sharing arrangement restricting competition.

The case arose after UDPL disclosed to the Pakistan Stock Exchange that it had entered into a non-compete agreement with IBL. Under the arrangement, UDPL agreed to refrain from distributing human pharmaceutical products in Pakistan for three years.

In return, UDPL received a payment of Rs1.131 billion from IBL, a transaction that was later examined by the competition regulator for its impact on market dynamics.

The CCP determined that the agreement limited competition in the relevant market and imposed penalties on both entities, which have now been recovered following the tribunal’s confirmation of the order.