SC Upholds CCP’s Price-Fixing Decision Against PVMA, Imposes Rs30m Penalty
ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 26th Aug, 2026) The Supreme Court of Pakistan has upheld the Competition Commission of Pakistan’s (CCP) finding that the Pakistan Vanaspati Manufacturers Association (PVMA) violated competition law by collectively determining prices of ghee and cooking oil. The court directed PVMA to pay a penalty of Rs30 million.
A two-member bench comprising Justice Jamal Khan Mandokhail and Justice Salahuddin Panhwar affirmed the CCP and Competition Appellate Tribunal (CAT)’s findings, stating that PVMA’s conduct amounted to prohibited price-fixing under Section 4 of the Competition Act, 2010.
The case originated from consultations held between the Federal Government and PVMA during 2007-09 on reducing ghee and cooking oil prices. PVMA participated in these discussions and subsequently communicated agreed prices to its member companies.
The CCP had previously found that PVMA negotiated and fixed prices with the government, constituting a violation of Section 4(1), read with Section 4(2)(a) of the Competition Act. The CAT had upheld a penalty of Rs50 million imposed by the CCP.
In its judgment, authored by Justice Jamal Khan Mandokhail, the Supreme Court concluded that the government’s consultations with PVMA on price reductions, without the CCP’s involvement, followed by collective price determination, breached competition law.
The court emphasized that competing businesses must independently determine their prices based on commercial considerations. Collective price fixing, whether direct among competitors or through a trade association, undermines competition by replacing independent pricing decisions with a common price.
Furthermore, the court clarified that even if an arrangement aims to serve the public interest, interference with independent price competition cannot be overlooked just because the agreed price is lower than existing market prices. While upholding the CCP’s substantive finding of price-fixing, the Supreme Court reduced the penalty to Rs30 million and directed PVMA to deposit this amount.
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