The CCP has imposed a penalty of Rs. 44 billion (US265million) on 55 sugar mills, including the Pakistan Sugar Mills Association (PSMA).
According to an order issued by the CCP full bench on Friday, the Competition Commission of Pakistan (the “Commission”) passed an order against PSMA and 81 member mills for violations of Section 4 of the Competition Act, 2010 (the “Act”).
Briefly, by way of background, the Commission initiated an inquiry in order to analyze “possible anti-competitive activities in the sugar industry”. To gather evidence, search and inspections were carried out under Section 34 of the Act at two premises of PSMA and of one of the sugar mills.
The penalty imposed by the Commission, which is the highest to date, is approximately Rs. 44 billion (approximately above USD 265 million) (based on the calculation of 55 mills’ 2019 turnover figures, including consolidated turnover figures for same group mills, available with the Commission):