Tribunal Upholds CCP’s Verdict on Price Fixing in Home Appliances Sector, Reduces Fine

ISLAMABAD: The Competition Appellate Tribunal has upheld the order of the Competition Commission of Pakistan (CCP) against two major electronic home appliances companies for engaging in resale price maintenance (RPM), a form of price fixing prohibited under the Competition Act, 2010.

While affirming the CCP’s findings of anti-competitive conduct, the Tribunal reduced the financial penalty from the original amount to PKR 90 million, instructing the companies to deposit the revised sum within 30 days.

The CCP had earlier penalized the companies for enforcing price restrictions on their dealers, preventing them from selling products at lower prices, offering discounts, or bundling products into promotional packages—actions deemed to undermine free market competition.

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In their appeal, the companies accepted the contravention ruling but contested the magnitude of the fine. The Tribunal acknowledged that both firms had taken corrective steps, including reimbursing dealers for amounts charged under the pricing policy, and pledged compliance with the Competition Act moving forward.

Citing the companies’ cooperative behavior and restitution efforts as mitigating factors, the Tribunal opted to reduce the penalty while reiterating the importance of lawful business practices.

The CCP, in response, reiterated its warning to all market participants to avoid any form of price fixing, including the imposition of minimum or maximum resale prices or curbing promotional discounts, as these practices represent serious breaches of competition law.