The Competition Commission of Pakistan (CCP) has imposed a cumulative penalty of Rs42 million on United Distributors Pakistan Ltd (PSX: UDPL) and its related party International Brands (Pvt) Ltd (IBL) for entering into – and giving effect to – a three‑year non‑compete agreement that contravened Section 4 of the Competition Act, 2010. In a detailed order issued on 2 July 2025, the watchdog found that the pact prevented UDPL from taking up distribution of human pharmaceutical products anywhere in Pakistan between 2022 and 2025. In return, IBL had agreed to pay Rs1.131 billion to UDPL as compensation for foregoing that line of business.
The contravention came to light after UDPL itself disclosed the arrangement in a letter to the Pakistan Stock Exchange (PSX). The company admitted that it had failed to file a timely exemption application with the CCP – a prerequisite under the Act for any potentially restrictive commercial arrangement. Although management emphasised that implementation of the non‑compete “was (and continues to be) subject to seeking the requisite exemption”, the watchdog ruled that simply executing the agreement without prior clearance constituted an offence. Each company has been ordered to pay Rs21 million within sixty days and to modify the agreement in line with competition law. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
