CCP summons sugar mills over cartelization charges

July 09, 2025 (MLN): The Competition Commission of Pakistan (CCP) has summoned the Pakistan Sugar Mills Association (PSMA) and its member sugar mills for a hearing scheduled on August 4th, 5th, 6th, and 7th, 2025.

The proceedings pertain to show cause notices issued in November 2020 for alleged cartelization and anti-competitive conduct.

These hearing notices follow the directive issued on May 21, 2025, by the Competition Appellate Tribunal (CAT).

The tribunal ordered a rehearing of the matter by a Chairperson or Member of the Commission who was not involved in the prior conflicting opinions.

The Tribunal also instructed that the case be resolved preferably within 90 days, according to the press release issued today.

Previously, in 2021, CCP had imposed a penalty of nearly Rs44 billion on PSMA and its member mills for violating competition laws.

That decision was later contested in the CAT, which raised concerns over the legality of a casting vote used by the then Chairperson to resolve a 2-2 deadlock within the original four-member bench.

The Tribunal concluded that casting votes could not be applied in quasi-judicial proceedings under the Competition Act, 2010, and consequently nullified the order.

CCP has now directed all involved parties to nominate authorized representatives and present all relevant facts and documentation for the upcoming rehearing.

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