In a landmark ruling, the Competition Appellate Tribunal has upheld the Competition Commission of Pakistan’s (CCP) decision against two major home appliance brands for engaging in resale price maintenance (RPM)—a form of illegal price fixing banned under Pakistan’s Competition Act, 2010.
While the Tribunal confirmed the companies had violated competition laws by forcing dealers not to sell below fixed prices or offer discounts, it reduced the fines previously imposed by CCP. The monetary penalty has now been set at Rs. 90 million, which the companies must pay within 30 days.
🛑 What Happened?
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The CCP initially found that the companies restricted their dealers from offering discounts, package deals, or adjusting prices.
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This practice, known as resale price maintenance, prevents fair market competition and harms consumers.
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The companies did not deny these actions but appealed to reduce the penalty.
✔️ Mitigating Factors Considered:
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The companies reimbursed dealers affected by the pricing restrictions.
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They committed to future compliance with competition law.
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They showed a cooperative stance during the proceedings.
Based on these actions, the Tribunal softened the financial penalty but made it clear that anti-competitive practices will not be tolerated.
📣 The CCP has urged all businesses to steer clear of fixing resale prices or blocking promotional offers, warning that such behavior is a serious violation of competition law and will face legal consequences.
