Tribunal reduces fine on Pakistan Flour Mills Association in price-fixing case

ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld the order of the Competition Commission of Pakistan (CCP) against the Pakistan Flour Mills Association (PFMA) for fixing wheat flour prices in violation of Section 4 of the Competition Act, 2010.

The Tribunal directed the Association to deposit a fine of Rs35 million into the national exchequer, according to a press release issued on Tuesday.

The CCP had launched an inquiry into PFMA after multiple news reports highlighted an unusual hike in wheat flour prices across Pakistan. The inquiry found that PFMA had engaged in anti-competitive conduct. PFMA later challenged the CCP’s decision before the Tribunal.

During the hearing, CCP’s counsel argued that Sections 4(1) and 4(2)(a) of the Competition Act prohibit any agreement or decision between undertakings, including associations, to fix prices.

The Commission maintained that PFMA’s repeated, structured issuance of price instructions undermined the commercial independence of individual mills, constituting a horizontal agreement with an anti-competitive objective.

After reviewing arguments and evidence from both sides, the Tribunal upheld the CCP’s findings but reduced the penalty to Rs35 million.

Reaffirming the CCP’s commitment to promoting fair competition, Chairman Dr Kabir Ahmed Sidhu warned business associations against using their platforms to share sensitive pricing information or engage in collusive practices for profit maximisation.