The Competition Appellate Tribunal in Karachi has upheld an antitrust ruling against leading dairy farmer associations for price-fixing in the milk industry, reducing penalties for key members. The case follows a thorough investigation revealing coordinated price hikes and anti-competitive practices in the dairy sector.
The Competition Appellate Tribunal in Karachi has reinforced an antitrust ruling against leading dairy farmer associations found guilty of colluding to inflate milk prices. The ruling comes after an investigation by the Competition Commission of Pakistan (CCP) revealed coordinated price hikes across the milk supply chain.
The fines imposed on the dairy associations were reduced, with each association now facing a Rs150,000 penalty, down from the original fines of Rs1 million and Rs500,000. The investigation uncovered that these associations used pressure tactics, such as threats to halt supply, to enforce the inflated prices. Video evidence further corroborated the claims, showing farmer leaders announcing the price hikes, alongside findings that pointed to the creation of an artificial shortage through stockpiling, especially in rural Sindh.
The CCP emphasized the need for commercial entities to avoid sharing sensitive information that could promote anti-competitive practices, underscoring the importance of fair market competition in Pakistan’s dairy industry.
This decision is expected to have broader implications on future dairy market operations and could serve as a cautionary tale for other sectors engaged in similar practices.
