Displaying items by tag: Competition Commission of Pakistan
Pakistan Supreme Court may consider cement producers’ claim against legality of Competition Commission of Pakistan
15 January 2021Pakistan: Cement producers including DG Khan have filed pleas to the Pakistan Supreme Court challenging the Lahore High Court’s ruling in favour of parliament’s right to introduce new competition legislation. The pleas challenge the constitutionality of the Competition Commission of Pakistan (CCP)’s existence, according to the Pakistan Today newspaper. The producers claim that the high court made a procedural error in failing to adjourn during the coronavirus pandemic and a domestic ban on air travel.
Competition Commission of Pakistan enquiry finds evidence of collusion by All Pakistan Cement Manufacturers Association members
17 December 2020Pakistan: A Competition Commission of Pakistan (CCP) enquiry committee has recommended that the commission take action against the All Pakistan Cement Manufacturers Association (APCMA). The Frontier Star newspaper has reported that the enquiry found evidence that APCMA members had formed collusive arrangements contrary to the prohibited agreements under the Competition Act.
The Pakistan Bureau of Statistics (PBS) recorded a cement price rise in Northern Pakistan in April 2020 and May 2020, and in major cities in northern Pakistan and southern Pakistan in June 2020 and July 2020. This occurred in spite of a reduction in demand in early 2020. As a result, the CCP launched a search and inspection of the APCMA head office and the office of its senior vice chairman, a cement company director, in September 2020.
APCMA’s Karachi offices searched in pricing probe
20 November 2020Pakistan: The Competition Commission of Pakistan (CCP) conducted a search and inspection of the Karachi offices of the All Pakistan Manufacturers Association (APCMA) on Thursday 19 November 2020. The search was carried out as part of an enquiry launched in May 2020 to investigate possible anti-competitive activities by cement producers. Two different CCP teams entered and searched the offices of the Chairman and Vice Chairman of APCMA and impounded relevant records.
The enquiry began based on the information gathered through various media reports and concerns expressed regarding a concurrent increase in cement prices across Pakistan, particularly during April 2020. The APCMA stands accused of orchestrating a price rise among producers.
The CCP previously searched and inspected the APCMA’s main offices in Lahore. That search allegedly led to the discovery of WhatsApp messages and emails that led investigators to believe there were grounds for further investigation.
Competition Commission of Pakistan conducts search of All Pakistan Cement Manufacturers Association headquarters
25 September 2020Pakistan: The Competition Commission of Pakistan (CCP) has conducted a search of the All Pakistan Cement Manufacturers Association (APCMA) headquarters in Lahore, Punjab Province as part of it investigation into alleged anticompetitiveness by cement producers. The Daily Frontier Star has reported that the aim of the search was “to gather evidence of possible communication, arrangement, agreement or understanding between cement producers pertaining to the alleged violation of the provisions of the Competition Act.” The CCP launched the investigation in May 2020 following a request from the Ministry of Industries and Production (MoIP).
Pakistan: The Competition Commission of Pakistan (CCP) has launched an investigation into alleged collusion between cement companies that may have been the cause of a localised cement price spike in northern Pakistan. On 25 July 2020 the Pakistan Bureau of Statistics (PBS) recorded cement price rises of up to 8.9% in Punjab and Khyber Pakthunkhwa compared to a month earlier, according to the Profit newspaper. Officials had predicted a nationwide price drop after the government abandoned the Federal Excise Duty (FED) on cement in June 2020. Prices have decreased by a small margin in the southern regions of Balochistan and Sindh.
The Ministry of Industries and Production previously asked producers to lower cement costs in May 2020 in order to boost construction in the interest of the post-coronavirus lockdown economic recovery.
Pakistan: The Competition Commission of Pakistan (CCP) has fined four cement producers for deceptive marketing practices in violation of the Competition Act 2010. Fines of US$1.8m each have been levied on Al-Abbas Cement, Attock Cement, Bestway Cement and Lucky Cement.
A CCP official said that the commission is mandated under the Competition Act 2010 to ensure fair competition in all spheres of commercial and economic activities. The Competition Commission of Pakistan is committed to maintain transparency for enhancing economic efficiency and to protect consumers from anticompetitive practices, including deceptive marketing.