Tag Archives: (CCP)

Competition Commission of Pakistan to convene open hearing to discuss competition concerns in sugar sector on January 25

Islamabad, January 22, 2018 (PPI-OT):Taking notice of the recent sugarcane procurement crisis in the country, the Competition Commission of Pakistan (CCP) will convene an open hearing on 25 January 2018 to discuss competition concerns in the sugar sector. On 18 January 2018, CCP published a public notice in the newspapers to inform the stakeholders and general public about the open hearing, which is expected to be attended by the farmers, sugar mill owners, consumers both from trade and industry and the general public, as well as the concerned federal and provincial government officials.

CCP will listen to the viewpoint of all the stakeholders and will then issue its opinion, says a statement issued here on Monday. The importance of competition in the sugar sector cuts across various levels of the market from sugarcane growers, through sugar mills, to commercial and common consumers. As a result, this sector has been the subject of various enforcement, advocacy, and policy level initiatives of the CCP in the past, with all efforts invariably aimed at making the sector more competitive.

The opening hearing is being held under the CCP’s advocacy mandate under Section 29 of the Competition Act, 2010. CCP is mandated to ensure a healthy competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive practices.

Those who wish to attend the open hearing may contact the Registrar of CCP by 23 January 2018 through phone number, 051-9100291, fax number, 051-9100297, email, asaeed@cc.gov.pk or through CCP’s postal address, 7th floor, 55-B, ISE Tower, Jinnah Avenue, Islamabad. For further details, please log on to CCP’s website, www.cc.gov.pk

For more information, contact:
Director (Media and Communications)
Competition Commission of Pakistan (CCP)
7th Floor South, ISE Towers,
55-B, Jinnah Avenue, Islamabad, Pakistan
Tel: +92-51-9100260-3, +92-51-9100256
Fax: +92-51-9100251
Email: akhattak@cc.gov.pk
Website: www.cc.gov.pk

Competition Commission of Pakistan imposes penalty on three Real Estate Developers for deceptive marketing practices

Islamabad, January 02, 2018 (PPI-OT):The Competition Commission of Pakistan (CCP) has passed three orders imposing penalties of PKR 2.5 million each on Eden Builders (Pvt.) Limited and Green Field Developers (Pvt.) Limited and PKR 10 million on Vision Developers (Pvt.) Limited for deceptive marketing campaigns for their respective housing schemes that were in violation of Section 10 of the Competition Act, 2010.

Green Field Developers marketing campaign for its housing scheme, ‘Green City,’ made the false claim that it was located in Islamabad whereas it was in Fateh Jang. Moreover, by affixing logos of various governmental bodies in its advertising campaigns without obtaining the necessary approvals to do so, Green Field Developers was distributing misleading information.

Eden Builders had made false claims about the location of its housing Scheme “Eden Life Islamabad,” stating that it was situated at a drive of 12 minutes from the Serena Hotel Islamabad and five minutes from the CDA Enclave and Chak Shahzad. Moreover, while the advertisements also indicated the price of the various sized plots, there was no clear mention of the development charges to be recovered later. Eden Builders also failed to show that it had the approval of the Capital Development Authority for this housing scheme on its name.

A Lahore-based real estate company, Vision Developers, had obtained the approval of the Lahore Development Authority (LDA) for a housing society, “River Edge Housing Scheme.” The company subsequently applied for NOC from the LDA for a new housing scheme, “Park View Villas”, which was denied by LDA for being located close to a riverbank, which could be prone to flooding. Despite this, Vision Developers advertised the new unapproved scheme under the deceptive name of “Park View Villas at River Edge Housing Society,” giving the impression that the new scheme was an extension of the earlier-approved “River Edge Housing Scheme.”

Eden Life and Green Field gave commitments to the Commission not to engage in deceptive marketing practices again. Vision Developers, however, never appeared before the CCP despite repeated notices being served to them. CCP observed that for the masses it almost takes a lifetime of savings or obtaining credit or loans to make such an investment for securing a more stable future.

This transactional decision, according to CCP, is a much more complex one as against buying a household or shelved product from a supermarket. In view of these observations, CCP has highlighted the higher burden placed on businesses which operate in the real estate market. CCP has stressed upon the importance of enhanced regulation of the real estate sector and responsible and accurate advertising by the developers to protect consumers from financial and material losses.

For more information, contact:
Director (Media and Communications)
Competition Commission of Pakistan (CCP)
7th Floor South, ISE Towers,
55-B, Jinnah Avenue, Islamabad, Pakistan
Tel: +92-51-9100260-3, +92-51-9100256
Fax: +92-51-9100251
Email: akhattak@cc.gov.pk
Website: www.cc.gov.pk

Competition Commission of Pakistan releases meat sector report for public comments

Islamabad, August 31, 2016 (PPI-OT):The Competition Commission of Pakistan has released a study on the meat sector in Pakistan for public comments, covering issues such as price monitoring and quality of meat and also exploring the growth potential of the sector. The study has been conducted as part of the assessments the CCP undertakes to understand competition issues in sectors that have implications for consumers. Meat is one of the heaviest weighed essential food items in the Consumer Price Index (CPI). The livestock sector fulfils the country’s meat, milk and poultry demand.

CCP in its report has identified ineffective price and quality monitoring at the district level that result in high price and low quality of meat that affects both urban and rural consumers. Smuggling of animals to neighbouring Afghanistan is also an issue that affects availability at affordable price to domestic consumers.

Meat production in Pakistan is mostly an unregulated informal activity. The meat industry is marred with many challenges including the low yield per animal, poor animal feed, lack of awareness among livestock breeders related to breeds and veterinary care, and disease control. Also, poor slaughtering methods and lack of accessibility to the Animal Mandis (markets) leads to low quality of meat products and excessive pricing.

The report says that establishing new slaughterhouses and improving facilities at the existing ones is necessary to ensure quality safeguards. Moreover, increasing the accessibility of farmers to the Animal Mandis is essential for providing quality meat to the consumers at reasonable prices.

Therefore, CCP recommends a public-private partnership to run the government slaughterhouses for efficiency and quality and to increase animal mandis so that farmers can easily access them. CCP also recommends that price setting, which takes place every six to twelve months, needs to be regulated during the interim periods and meat prices should be based on both the quality of the meat and its grading.

Another market identified by CCP is the growing international demand for Halal meat and meat products. The demand for Halal meat has been growing globally. Pakistan produces 100 percent Halal meat and export of halal meat and meat products can be a significant source of foreign exchange earnings.

CCP has acknowledged efforts of the Government especially the Ministry of National Food Security and Research, which has undertaken certain regulatory measures to encourage livestock sector and for the establishment of value added meat market in the country. Section 28 of the Competition Act empowers CCP to conduct studies for promoting competition in all sectors of commercial economic activity. The study on meat sector is available on the Commission’s website, www.cc.gov.pk.

For more information, contact:
Asfandyar Khattak
Director (Media and Communications)
Competition Commission of Pakistan (CCP)
7th Floor South, ISE Towers,
55-B, Jinnah Avenue, Islamabad, Pakistan
Tel: +92-51-9100260-3, +92-51-9100256
Fax: +92-51-9100251
Email: akhattak@cc.gov.pk
Website: www.cc.gov.pk

Competition Commission of Pakistan issues show cause notice to Proctor and Gamble Pakistan for deceptive marketing practises

Islamabad, March 15, 2016 (PPI-OT): The Competition Commission of Pakistan (CCP) while concluding an enquiry has issued a show cause notice to Proctor and Gamble Pakistan (Pvt.) Limited for indulging in alleged deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.

CCP received a complaint from Reckitt Benckiser (Pakistan) Limited alleging that Proctor and Gamble had launched a marketing campaign for one of its products, ‘Safeguard’, wherein the company claimed without reasonable basis that Safeguard is “Pakistan’s No.1 Rated Anti-bacterial Soap.”

An enquiry conducted by the CCP’s Office of Fair Trade (OFT) into the matter concluded that Proctor and Gamble failed to provide substantial justification for its product ‘Safeguard” being “Pakistan’s No.1 Rated Anti-bacterial Soap.” According to the enquiry, the false claim has thus resulted in distribution of false and/or misleading information to consumers related to the quality of their product, Safeguard in violation of Section 10 of the Competition Act.

It further stated that due to this claim, the general public may interpret Safeguard to be Pakistan’s No.1 anti-bacterial soap, in contrast to the facts, leading them to prefer Safeguard over other competing anti-bacterial soaps. This conduct is capable of harming the business interests of its competitors including Reckitt Benckiser (Pakistan) Limited, which is a violation of Section 10 of the Act.

Therefore, a show cause notice has been issued to Proctor and Gamble Pakistan (Pvt.) Limited and the company has been called upon for hearing on a given date. CCP is mandated under the Competition Act, 2010 to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive practices including deceptive marketing.

For more information, contact:
Asfandyar Khattak
Director (Media and Communications)
Competition Commission of Pakistan (CCP)
7th Floor South, ISE Towers,
55-B, Jinnah Avenue, Islamabad, Pakistan
Tel: +92-51-9100260-3, +92-51-9100256
Fax: +92-51-9100251
Email: akhattak@cc.gov.pk
Website: www.cc.gov.pk

Competition Commission of Pakistan issues show cause notice to company for deceptive marketing practices

Islamabad, March 14, 2016 (PPI-OT):The Competition Commission of Pakistan (CCP) while concluding an enquiry has issued a show cause notice to Colgate-Palmolive Pakistan Limited for prima facie indulging into deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.

CCP had received a complaint from Reckitt Benckiser Pakistan Limited alleging that Colgate-Palmolive Pakistan Limited, while marketing its products ‘Max All Purpose Cleaner’ (Max APC), used claims of “99.9% Bacteria Free” and “24 Hours Long Lasting Freshness” on the outer packaging of their product, along with claims that the product protects against “Cold and Flu”, “Skin Infections” and “Food Poisoning”, with a disclaimer reading “Based on laboratory testing with concentrate usage”, without any reasonable basis.

The complaint further alleged that Colgate-Palmolive Pakistan Limited issued a trade letter which stated that Max APC offered for a lesser price a quantity of 50ml more than Reckitt Benckiser Pakistan Limited’s product ‘Dettol Surface Cleaner’ (Dettol). They also suggested that Max APC is a more effective product than Dettol, thereby discrediting the properties and use of Dettol, without any result based testing to substantiate the same.

CCP’s Office of Fair Trade (OFT) initiated an enquiry against the claims made by Colgate-Palmolive Pakistan Limited and concluded that the Respondent had indeed been using the respective claims without sufficient test based results to substantiate the same, thereby violating Section 10 of the Competition Act.

A show cause notice has been issued to Colgate-Palmolive Pakistan Limited and the company has been called upon for hearing on a given date. CCP is mandated under the Competition Act to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from deceptive marketing practices.

For more information, contact:
Asfandyar Khattak
Director (Media and Communications)
Competition Commission of Pakistan (CCP)
7th Floor South, ISE Towers,
55-B, Jinnah Avenue, Islamabad, Pakistan
Tel: +92-51-9100260-3, +92-51-9100256
Fax: +92-51-9100251
Email: akhattak@cc.gov.pk
Website: www.cc.gov.pk

Competition Commission of Pakistan approves Pakistan State Oil’s acquisition of upto 26.67percent shareholding in Pakistan Refinery Limited

Islamabad, March 04, 2016 (PPI-OT): The Competition Commission of Pakistan (CCP) has granted approval to the acquisition of upto 26.67% shares in Pakistan Refinery Limited (PRL) by Pakistan State Oil Company Limited (PSO). PRL is a local refinery producing various refined petroleum products such as motor gasoline, kerosene, and diesel oil for supply to oil marketing companies. PSO is an oil marketing company engaged in the supply of refined petroleum products to end consumers.

The approval in form of an order under Section 11 read with Section 31 of the Competition Act, 2010 (the ‘Act’) was passed by a bench comprising Ms. Vadiyya Khalil, Chairperson, Mr. Ikram Ul Haque Qureshi, Member (Cartels and Trade Abuses, and Legal) and Dr. Shahzad Ansar, Member (OFT and Advocacy). While passing the order, CCP has also disposed of a complaint filed by Hascol Petroleum Limited (Hascol) regarding potential discontinuation of supply of refined petroleum products by PRL to PSO’s competitors after the acquisition.

CCP observed that the acquisition of PRL’s shares by PSO would not substantially lessen competition in the market. It was noted that PRL’s share in the local refined petroleum product market was around 10% and that local refineries including PRL collectively supply less than 50% of the total demand of refined petroleum products in Pakistan while the rest is met by imports undertaken by Oil Marketing Companies (OMCs) themselves.

With imports being readily available, PSO would have no incentive to foreclose the supply of refined petroleum products from PRL to its competitors such as Hascol. Furthermore, with downstream petroleum industry heavy regulated by Oil and Gas Regulatory Authority, there is no chance of PSO raising prices for competitors or end consumers.

CCP further observed that Hascol’s concerns were not acquisition-specific. While disposing off Hascol’s complaint and allowing the acquisition, CCP directed both PSO and PRL not to engage in any form of exclusionary conduct, and to continue offering its refined petroleum products to other OMCs including Hascol on commercially viable and competitive terms. In the event that any anti-competitive behaviour is brought to the knowledge of CCP, the parties in question would be proceeded against in accordance with the law.

For more information, contact:
Asfandyar Khattak
Director (Media and Communications)
Competition Commission of Pakistan (CCP)
7th Floor South, ISE Towers,
55-B, Jinnah Avenue, Islamabad, Pakistan
Tel: +92-51-9100260-3, +92-51-9100256
Fax: +92-51-9100251
Email: akhattak@cc.gov.pk
Website: www.cc.gov.pk