ISLAMABAD: The Competition Commission of Pakistan (CCP) has successfully recovered Rs 27 million as penalty from Reliance Paints and Pakistan Steel Mills (PSM) through attachment of their bank accounts.
According to a press release issued by the CCP on Tuesday, the acquisitions are part of the CCP’s broader strategy to implement its mandate of ensuring a level playing field in all sectors, which is anti-competitive. Demonstrates commitment to coping methods.
Over the past year, the CCP has collected a total of Rs 69 million in fines, which is 25 percent of the total collected since the commission was established in 2007. Interests To date, CCP has recovered PKR 269 million in fines.
In the case of Reliance Paints, the inquiry was initiated following a formal complaint by Akzo Nobel Pakistan Limited, alleging that the company was fixing minimum resale prices and not complying with pricing guidelines. Penalizing dealers and retailers for doing so.
The CCP’s enquiry confirmed that Reliance Paints’ practices were restricting competition not only among its dealers but also between Reliance and its competitors, as rigid retail prices prevented discounts to consumers.
As a result, the CCP imposed a Rs5 million fine, which was later reduced to Rs2.5 million by the Competition Appellate Tribunal (CAT), although the Tribunal upheld the CCP’s findings.
In another instance, the CCP has fined Pakistan Steel Mills (PSM) Rs 25 million for abusing its dominant position in the low-carbon steel market.
An inquiry conducted by the CCP from November 2008 to February 2009 revealed that PSM engaged in anti-competitive practices by unfairly restricting access to certain grades of steel billets namely SAE 1008 and SAE 1010.
PSM denied supply to Frontier Foundry (FFPL) while preferentially supplying to other buyers. This selective distribution distorts competition in the downstream market, where PSM has a monopoly.
These cases highlight the CCP’s proactive stance in ensuring compliance with competition law to protect competitive practices and promote a fair market for all.
