KEY POINTS
- Competition regulator imposes Rs 10 million penalty for cartel behaviour
- Transport associations found guilty of collective rate-setting across provinces
- Decision aims to safeguard competitive pricing and consumer interests
- CCP warns of additional fines and legal action for non-compliance
ISLAMABAD: Pakistan’s competition regulator has fined two leading transport associations Rs 10 million (about US$36,000) for colluding to fix nationwide freight rates, saying the practice distorted competition and raised logistics costs for industries dependent on cargo movement across the country.
The Competition Commission of Pakistan (CCP), the independent antitrust body tasked with ensuring fair market practices, said in its order that the Transporters of Goods Association (TGA) and the Local Goods Transport Association (LGTA) had engaged in collective price-setting by issuing uniform rate circulars to transporters operating between Port Qasim and other regions.
The CCP found that both associations had restricted independent pricing decisions by the Members, violating Section 4 of the Competition Act, 2010, which prohibits any agreements or practices that fix prices, limit supply, or otherwise restrict competition.
The Commission’s investigation determined that the associations had enforced fixed freight tariffs through joint deliberations and circulars, thereby influencing market rates for transportation services across Sindh, Balochistan, and adjoining regions.
The inquiry concluded that this conduct inflated logistics costs for key industrial sectors, including textiles, cement, chemicals, and food processing, and contributed to a broader rise in consumer prices.
The two-member CCP bench — Chairman Kabir Ahmed Sidhu and Member Bushra Naz — said the penalty was based on the Guidelines on Imposition of Financial Penalties, which require fines to reflect the seriousness of the infringement and to act as a deterrent against future violations. The decision also took into account the financial position of the associations.
During the hearing, the transport associations claimed that their office bearers were unaware of competition law provisions and requested leniency.
The CCP rejected the plea, stating that “ignorance of law is no excuse,” and emphasised that all commercial entities are legally obligated to comply with the Competition Act.
The order directs both associations to deposit the fines within 30 days. Failure to comply will trigger an additional daily penalty of Rs10,000 and may result in criminal proceedings under Section 38 of the Act.
In a statement accompanying the order, Chairman Sidhu urged all trade and industry bodies to avoid price coordination and the sharing of sensitive commercial information, warning that such practices “undermine competition, inflate prices, and harm consumers.”
Established in 2007, the CCP operates as Pakistan’s autonomous competition watchdog, empowered to prevent cartels, abuse of market dominance, deceptive marketing, and other anticompetitive conduct.
The regulator has recently increased enforcement activity in sectors such as cement, poultry, edible oils, and transport, aligning its actions with global antitrust standards followed by the European Commission and the U.S. Federal Trade Commission (FTC).
