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PAKISTAN SUGAR MILLS ASSOCIATION (PSMA) AND MEMBER UNDERTAKINGS vs S. 4 — 2022 CLD 1068 COMPETITION COMMISSION OF PAKISTAN

Case information

Citation
2022 CLD 1068 COMPETITION COMMISSION OF PAKISTAN
Year
2022
Reporter
CLD
Parties
PAKISTAN SUGAR MILLS ASSOCIATION (PSMA) AND MEMBER UNDERTAKINGS vs S. 4
Provisions referred to
S. 4---; S. 4; Competition Act

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

PAKISTAN SUGAR MILLS ASSOCIATION (PSMA) AND MEMBER UNDERTAKINGS VS S. 4--- Prohibited agreements---Exchange of commercially sensitive information--- Sharing stock information--- Scope--- Competition Commission issued show cause notice to the undertakings and association of undertakings for making collective decision on what quantities to be recommended for export---[Per Ms. Rahat Kaunain Hassan, Chairperson and Mujtaba Ahmad Lodhi, Member (Majority view): Collection of current or real stock position used for the purpose of collectively determining export quantities at association's end was not justifiable and constituted violation of S. 4(1) of the Competition Act, 2010---Such information could allow undertakings to coordinate future sales volumes, export and pricing strategies causing distortion and removing the degree of uncertainty in the domain left for players to compete or decide freely---Competition Commission imposed penalty on the undertakings and directed them to discontinue the violations]---[Per Ms. Shaista Bano, Member and Ms. Bushra Naz Malik, Member (Minority view): Neither the show cause notice nor the Enquiry Report had made specific reference to or confronted the respondents with the allegations in the particular context of the contravention based on the alleged collective determination of export quantities specifically---Neither the association nor any member undertaking had come to any collective "agreement" or "decision" to "fix" the quantity to be sold---Material relied upon in the Enquiry Report to reach contrary conclusion did not show any such "agreement" to "fix" the quantity to be sold---Conclusion in the enquiry report was based on unsubstantiated inferences, which were unwarranted.

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