The Competition Appellate Tribunal (CAT) has upheld the decision of the Competition Commission of Pakistan (CCP) against the Pakistan Flour Mills Association (PFMA) for violating Section 4 of the Competition Act, 2010 by fixing wheat flour prices. The Tribunal ordered the Association to pay a reduced fine of Rs. 35 million to the national exchequer.
The CCP launched an inquiry into PFMA after multiple news reports highlighted an unusual surge in wheat flour prices across the country. The investigation found that PFMA was involved in anti-competitive practices. PFMA later challenged the CCP’s ruling before the Tribunal.
According to CCP’s legal team, Sections 4(1) and 4(2)(a) of the Competition Act strictly prohibit any agreement between businesses, including associations, that aims to fix prices. The CCP stated that PFMA’s repeated issuance of structured price instructions to its members restricted the commercial independence of individual mills, amounting to a collusive agreement with anti-competitive objectives.
