ISLAMABAD, July 10: The Competition Appellate Tribunal has upheld the order of the Competition Commission of Pakistan (CCP) against leading electronic home appliances brands for engaging in resale price maintenance (RPM), a prohibited form of price fixing under the Competition Act, 2010. While maintaining the findings of contravention, the Tribunal reduced the monetary penalty imposed by the CCP to the tune of 90 million, directing the companies to deposit the amount within 30 days.
The CCP had earlier imposed penalties on the companies after concluding that both the companies in the home appliances sector had engaged in anti-competitive conduct by restricting their dealers from selling products below specific prices, offering discounts, or providing package deals.
In their defense before the Tribunal, the companies did not challenge the finding of contravention but argued that the penalty imposed was high. The Tribunal noted that the appellants demonstrated remedial actions by reimbursing to the dealers the amounts which were imposed by the companies under their price fixing policy. They also assured strict future compliance with the Competition Act.
Taking the mitigating factors into account – particularly cooperative stance and restitution to affected parties – the Tribunal reduced the penalties imposed on both companies. The Tribunal also noted the companies’ commitment to lawful business practices going forward.
The CCP urges all undertakings to refrain from all forms of price fixing, including the setting of minimum or maximum resale prices and imposing restrictions on discounts or promotional offers, as such practices constitute serious violations of competition law.
