CCP Imposes Rs 35M Fine on Flour Millers
The Competition Appellate Tribunal (CAT) has upheld a ruling by the Competition Commission of Pakistan (CCP) against the Pakistan Flour Mills Association (PFMA) for fixing wheat flour prices, a practice deemed to violate Section 4 of the Competition Act, 2010. The Tribunal directed the Association to pay a reduced fine of PKR 35 million to the national treasury.
The case originated when the CCP launched an inquiry following several news reports of a sudden and unusual rise in wheat flour prices across the country. Investigators concluded that PFMA had engaged in anti-competitive behaviour, prompting enforcement action. PFMA challenged the order in the Tribunal, seeking to overturn the findings.
During the hearing, CCP’s counsel pointed out that Sections 4(1) and 4(2)(a) of the Competition Act strictly forbid any agreement, decision, or practice by businesses — including trade associations — aimed at fixing prices.
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According to the CCP, the consistent issuance of coordinated price instructions by PFMA effectively removed the independent pricing decisions of individual mills, amounting to a horizontal agreement designed to restrict competition.
After reviewing arguments from both sides and examining the evidence, the Tribunal supported the CCP’s position but decided to reduce the penalty amount.
Following the verdict, CCP Chairman Dr Kabir Ahmed Sidhu reiterated that the Commission remains committed to protecting fair market practices. He warned trade bodies against using their platforms to share sensitive price-related information or engage in collusion that benefits members at the expense of consumers.
The CCP stressed that such actions undermine competition, distort markets, and ultimately burden the public with inflated prices.
