CAT sets April 24 for Cement Cartel Case hearing

April 21, 2025 (MLN): In a significant development in the long-standing cement cartelisation case, the Competition Appellate Tribunal (CAT) has slapped a fine of Rs10,000 on cement manufacturers for seeking adjournment and stalling proceedings.

The tribunal has now scheduled April 24, 2025 as the next date of hearing in the appeals filed against a 2009 ruling of the Competition Commission of Pakistan (CCP), which had levied a cumulative fine of Rs6.35 billion on 20 companies for engaging in anti-competitive practices.

This case, dormant for several years, has now resumed after the tribunal became functional with recent appointments.

During the latest hearing, several senior counsel failed to appear, which the tribunal viewed as a deliberate attempt to obstruct the legal process. The CAT responded by issuing a penalty to discourage further delays.

The original CCP order, dated August 27, 2009, was the result of a suo moto investigation triggered by media reports alleging collusion among cement manufacturers.

Acting on its mandate, CCP searched the All Pakistan Cement Manufacturers Association (APCMA) premises and recovered key documents, including a May 8, 2003, agreement, and a seven-month record of cement dispatches— both pointing toward coordinated actions among the players to control supply and fix prices.

The CCP concluded that the manufacturers had breached Section 4 of the Competition Ordinance, which prohibits agreements that restrict competition.

Penalties were levied based on 7.5% of each company's annual turnover, with the APCMA fined Rs50 million.

Below is a breakdown of the penalties imposed on each company:

Following the imposition of these fines, many companies sought relief through stay orders from various courts, while some directly approached the Supreme Court.

In June 2017, the apex court directed that the matter should be resolved by CAT in accordance with the law, which stipulates a six-month timeline for adjudication.