CCP’s 2025 crackdown on cartelization

December 29, 2025 (MLN): The Competition Commission of Pakistan (CCP) intensified its enforcement drive against cartelization, price fixing, collusion, and abuse of dominant position during 2025.

Decisive action was taken across multiple sectors including sugar, steel, poultry, fertilizer, education, transport, advertising, power supply, and manufacturing.

One of the most significant actions was taken in the sugar sector, where the CCP issued show cause notices to ten sugar mills in Punjab over suspected cartelization, according to the press release.

The mills allegedly colluded to delay the start of crushing operations and fix sugarcane prices at Rs400 per maund.

The Commission is set to initiate formal legal proceedings after receiving responses from the mills.

In the steel industry, the CCP imposed a cumulative fine of Rs1.5bn on Aisha Steel Mills Limited and International Steels Limited for forming a cartel and exchanging commercially sensitive information.

The inquiry revealed that the coordinated practices led to an average increase of 111% in steel prices over three years.

The education sector also came under scrutiny as the CCP issued show-cause notices to seventeen major private school systems.

These institutions were accused of abusing their market position by forcing parents to buy expensive, logo-branded notebooks, workbooks, and uniforms from designated vendors.

Schools have been directed to submit their responses by December 31, after which formal hearings will begin.

Strong enforcement actions were also carried out in the poultry sector, where eight major hatcheries were fined a total of Rs155 million for cartelization aimed at raising the prices of day-old broiler chicks.

Similarly, in the fertilizer sector, six leading urea manufacturing companies were collectively fined Rs370m for anti-competitive practices.

In the transport sector, the Competition Commission penalized the Transporters of Goods Association and the Local Goods Transport Association, imposing fines totaling Rs5m for engaging in rate fixing.

For the first time, the CCP introduced enforcement action in Lahore’s out-of-home advertising market.

Advertising agencies and their association were investigated for alleged cartelization, price fixing, and collusive bidding in tenders.

Raids were conducted to gather documentary and digital evidence.

Similar search operations were carried out against companies involved in the supply and repair of transformers for electricity distribution companies over suspected bid rigging.

In Gujrat, the Commission conducted search and inspection operations at the premises of two electric fan manufacturers and their industry association, recovering evidence related to suspected cartelization and price determination. Investigations in these cases remain ongoing.

To ensure effective implementation of its enforcement actions, the CCP actively pursued cases before courts and the Competition Appellate Tribunal.

In several rulings, the Tribunal upheld the Commission’s findings on cartelization.

Notably, it disposed of a long-pending case against the Pakistan Poultry Association, confirming the CCP’s decision and ordering the recovery of Rs25 million in penalties.

The Tribunal also upheld fines of Rs35m against flour mills in a case involving price fixing by the Pakistan Flour Mills Association.

Additionally, it rejected a stay application filed by eight poultry hatcheries against fines amounting to Rs150m in a fresh cartelization case.

The Competition Commission reaffirmed its commitment to promoting fair competition and protecting consumers.

It also emphasized ensuring transparency in markets through sustained and robust enforcement against anti-competitive practices.

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