The Supreme Court of Pakistan upheld the findings of Competition Commission of Pakistan (CCP) against the Pakistan Poultry Association (PPA) in the first-ever cartel case in the country's judicial history. However, the apex court reduced the penalty amount imposed on the PPA from Rs. 100 million to Rs. 25 million.
In a statement issued yesterday, the CCP said that in deciding the country's first-ever cartel case, the Supreme Court of Pakistan gave a verdict on the civil appeal filed on behalf of the Pakistan Poultry Association (PPA) against the judgment of the Competition Appellate Tribunal, which upheld the CCP’s 29 February 2016 judgment with respect to price fixing in contravention of Section 4 of the Competition Act, 2010.
The CCP had imposed a fine of Rs. 100 million on the Pakistan Poultry Association (PPA) for the fixing of price of poultry products, in violation of Section 4 of the Competition Act, 2010. The Supreme Court, to this extent, allowed the PPA’s appeal and reduced the penalty from Rs. 100 million, imposed by the CCP in its order, to Rs. 25 million. The SC took into account that PPA advertisements were discontinued after a few days, such as “after two days for eggs and five days for poultry.”
The Supreme Court directed the PPA to pay the penalty amount of Rs. 25 million within a period of 15 days from the date of the order. Moreover, it directed the CCP to “frame and notify relevant rules inter alia relating to the imposition of penalties.”
Currently, guidelines exist on the imposition of financial penalties. Under Section 57 of the Act, the Commission, with the approval of the federal government, has the power to make additional rules to streamline its functions.
In a statement issued yesterday, the CCP said that in deciding the country's first-ever cartel case, the Supreme Court of Pakistan gave a verdict on the civil appeal filed on behalf of the Pakistan Poultry Association (PPA) against the judgment of the Competition Appellate Tribunal, which upheld the CCP’s 29 February 2016 judgment with respect to price fixing in contravention of Section 4 of the Competition Act, 2010.
The CCP had imposed a fine of Rs. 100 million on the Pakistan Poultry Association (PPA) for the fixing of price of poultry products, in violation of Section 4 of the Competition Act, 2010. The Supreme Court, to this extent, allowed the PPA’s appeal and reduced the penalty from Rs. 100 million, imposed by the CCP in its order, to Rs. 25 million. The SC took into account that PPA advertisements were discontinued after a few days, such as “after two days for eggs and five days for poultry.”
The Supreme Court directed the PPA to pay the penalty amount of Rs. 25 million within a period of 15 days from the date of the order. Moreover, it directed the CCP to “frame and notify relevant rules inter alia relating to the imposition of penalties.”
Currently, guidelines exist on the imposition of financial penalties. Under Section 57 of the Act, the Commission, with the approval of the federal government, has the power to make additional rules to streamline its functions.