Islamabad (HRNW): The Supreme Court has upheld the decision of the Competition Commission of Pakistan (CCP) in a case concerning the collective determination of ghee and cooking oil prices, directing the Ghee and Cooking Oil Manufacturers Association to pay a Rs30 million fine.
A two-member bench comprising Justice Jamal Khan Mandokhail and Justice Salahuddin Panhwar endorsed the findings of the CCP and the Competition Appellate Tribunal, ruling that collectively fixing prices of ghee and cooking oil constitutes a violation of Section 4 of the Competition Act.
The court held that competing businesses must determine their prices independently. Collective price-setting through a trade association also restricts competition, the court observed.
The Supreme Court clarified that even if a collectively determined price is lower and appears beneficial to consumers, competing businesses cannot legally agree among themselves to fix prices.
The court further observed that public interest cannot be used as a justification for collective price-fixing. Every business must independently determine prices according to its own commercial requirements.
CCP Bypassed in Pricing Consultation
The court observed that the relevant competition authority should have been approached regarding pricing matters. Consulting the Pakistan Vanaspati Ghee and Cooking Oil Manufacturers Association (PVMA) on prices while bypassing the CCP resulted in a violation of the Competition Act.
The Supreme Court upheld the CCP’s price-fixing findings against PVMA and endorsed the fundamental conclusions reached by both the CCP and the Competition Appellate Tribunal.
The court further ruled that a jointly determined price cannot replace prices established through independent market competition.
Human Rights & Consumer Rights Perspective
A transparent and competitive pricing system is important for protecting consumer and economic rights. Ensuring that businesses independently determine prices can help maintain fair competition and protect consumers from the potential impact of coordinated or artificially determined prices.
Disclaimer
This report is based on the proceedings and observations of the Supreme Court. The findings concerning the fine and alleged violation of competition law are reported in accordance with the court’s decision and the relevant official record.
