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The CCP penalties on businesses have surged past Rs1 billion in FY25, following a sweeping crackdown by the Competition Commission of Pakistan (CCP) that targeted anti-competitive practices across several critical sectors.
In a significant drive to uphold competition laws, the CCP issued 12 major orders during the fiscal year, imposing hefty penalties on companies found guilty of cartelisation, deceptive marketing, and price manipulation. These CCP penalties on businesses affected industries ranging from fertilisers and poultry to automobiles, pharmaceuticals, real estate, food, hygiene products, paints, and education.
According to details, the CCP accelerated enforcement by reducing procedural delays and expediting hearings, leading to quicker case conclusions and stronger market oversight. Of the 12 rulings, eight involved deceptive marketing tactics, three addressed cartelisation and price-fixing, while one order — issued on the Lahore High Court’s directive — dealt with jurisdictional questions under Section 10(2) of the Competition Act concerning trademark misuse.
A landmark case saw the CCP fine six urea manufacturers along with their trade body, the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), a combined Rs375 million for colluding to fix prices. Each producer faced a Rs50m penalty, while the association was fined Rs75m. Similarly, eight poultry hatcheries were collectively penalised Rs155m for conspiring to control the prices of day-old broiler chicks.
Major Fines for Deceptive Marketing
Among the deceptive marketing cases, Kingdom Valley received a Rs150m fine for misleading claims about its housing scheme. Unilever Pakistan and FrieslandCampina Engro were fined Rs75m each for promoting frozen desserts as “ice cream,” breaching product labelling standards. Unilever was also hit with an extra Rs60m penalty over false advertising for its Lifebuoy brand.
Further actions included a Rs40m fine on Al-Ghazi Tractors for unverified fuel efficiency statements and a Rs25m penalty on Hyundai Nishat Motors for promotional misrepresentations tied to the Hyundai Tucson SUV. In the pharmaceutical sector, 3N Lifemed Pharmaceuticals initially faced a Rs20m fine for using fake certifications in marketing dialysis machines, later reduced to Rs2m by the Competition Appellate Tribunal. Additionally, British Lyceum School and Diamond Paints were each fined Rs5m for deceptive advertising.
“Cartelisation is a serious offence and will not be tolerated,” warned CCP Chairman Dr Kabir Sidhu. Highlighting the broader impact, he stressed that such practices undermine economic growth, infringe consumer rights, and discourage investment. Dr Sidhu also urged trade associations to steer clear of enabling collusion, cautioning that these platforms should not be abused to manipulate markets or exploit consumers.
With overall CCP penalties on businesses crossing the Rs1 billion mark this fiscal year, the watchdog’s intensified scrutiny sends a strong message that anti-competitive behaviour will face stringent consequences.
