ISL to review CCP Order after Rs914m penalty over price-fixing allegations

October 09, 2025 (MLN): International Steels Limited (ISL) has decided to review the details of the order issued by the Competition Commission of Pakistan (CCP) and will take appropriate legal steps in response to the hefty penalty imposed on the company.

The CCP, in a landmark ruling, has fined Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) a combined Rs1.56 billion after finding both companies guilty of cartelization and price-fixing, a violation of Section 4 of the Competition Act, 2010.

According to the CCP order, ASML has been fined Rs648.3 million, while ISL faces a penalty of Rs914.2 million.

The CCP Bench, comprising Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz, concluded that both undertakings engaged in “the most egregious form of cartelization, price fixing,” in the flat steel market.

The Commission’s inquiry revealed that both companies coordinated pricing strategies, exchanged sensitive commercial information, and fixed steel prices, leading to an average price increase of 111%, with steel prices soaring by Rs146,000 per tonne over three years.

The order further noted that the cartel operated between July 2020 and December 2023, with senior management, including CEOs, directly involved in the collusive conduct.

The CCP found no mitigating factors to justify leniency, emphasizing the deliberate and prolonged nature of the violation.

Flat steel, a key input in construction, automotive, appliance, and agricultural sectors, was identified by the CCP as a critical commodity, meaning that any manipulation of its price could have broad economic repercussions.

The penalties represent 1% of the companies’ annual turnover for FY2021–22, and both firms have been directed to deposit the amount within 60 days.

Failure to comply may result in an additional daily fine of Rs100,000 and potential criminal proceedings under Section 38 of the Act.

The CCP initiated its investigation into the flat steel sector in May 2021 following complaints of parallel pricing patterns.

In June 2024, search operations at both companies’ premises uncovered evidence confirming identical price revisions and information exchange, consistent with collusive behavior.

The order concludes a multi-year investigation, reaffirming the CCP’s stance to curb anti-competitive practices and safeguard consumers and market competition in vital industrial sectors.

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