2025 CLD 1570 COMPETITION COMMISSION OF PAKISTAN

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VS S. 2(1)(k)---Term, "relevant market"---Scope---To determine "relevant product market" first step is to identify relevant products or services that are interchangeable or substitutable with those at issue---Products are considered interchangeable or substitutable in a relevant market based on their characteristics, prices and intended uses. Citation Name: 2025 CLD 1570 COMPETITION COMMISSION OF PAKISTANBookmark this Case VS S. 2(1)(q)---Term, "undertaking"---Scope---Respondent / Association raised an objection that it did not qualify as an "undertaking"---Validity---Respondent / Association qualified to be an "undertaking" under S. 2 (1)(q) of Competition Act, 2010, as it functioned as an association of undertakings---Respondent / Association represented and coordinated actions of fertilizers manufacturers, engaged in advocacy and communication within the industry and had participated in matters relating to supply and pricing urea---Activities of respondent / Association demonstrated economic engagement, irrespective of its registration status---Respondent / Association fell within the scope of S. 2(1)(q) of Competition Act, 2010, as it was applicable to both formal and informal associations based on their de facto conduct---Objection was repelled in circumstances. Citation Name: 2025 CLD 1570 COMPETITION COMMISSION OF PAKISTANBookmark this Case VS S. 4---Fertilizer Policy, 2001---Cartelization---Fixing of price---State Action Doctrine---Applicability---Joint advertisement---Respondents / undertakings were alleged to have fixed price of "urea fertilizer" defeating healthy competition in market by entering into an agreement to such effect---Validity---There was no evidence direct or indirect of governmental compulsion that would justify respondents' / undertakings' conduct of joint price fixation under the State Action Doctrine---Respondents / undertakings failed to satisfy the legal threshold required to invoke such plea of State Action Doctrine---Respondents / undertakings acted on their own violated without any binding directive or legal mandate from the government in publishing advertisement announcing a uniform urea price---Such act of respondents / undertakings was violation of S. 4 of Competition Act, 2010 in circumstances---Respondents / undertakings conduct was not merely informational but constituted an impermissible attempt to orchestrate market wide pricing uniformly---Such act undermined the core objective of competition law i.e. to provide free competition, enhance economic activity and to protect consumers from anti-competition behaviour---One of the undertaking had higher production cost yet it agreed to follow Maximum Retail Price set by respondent / Association, apparently to its disadvantage---Such conduct led to the conclusion that consent of undertakings to go along with any price increase by competitor despite it being not commercially viable led to a restrictive competition---Respondents / undertakings acted in contravention of S. 4 of Competition Act, 2010 by entering into an agreement and / or engaging in a concerted practice to fix the price of urea fertilizer---Respondents / undertakings restricted competition in the relevant market, resulting in adverse effects on the economy, farmers and end consumers---Competition Commission imposed penalties upon respondents / undertakings, as they had violated the provisions of S. 4 of Competition Act, 2010---Competition Commission directed the respondents / undertakings to restore and ensure deregulated market dynamics in accordance with Fertilizer Policy, 2001 and desist from such concerted practices of uniform price fixation despite established different operational and financial dynamics, particularly the input costs---Show cause notice was disposed of accordingly. Citation Name: 2025 CLD 1570 COMPETITION COMMISSION OF PAKISTANBookmark this Case VS S. 2(1)(k)---Term, "relevant market"---Scope---Term "relevant market" comprises two components: the relevant product market and the relevant geographic market. Citation Name: 2025 CLD 1570 COMPETITION COMMISSION OF PAKISTANBookmark this Case VS S. 4---Cartelization---Terms "price parallelism" and "conscious parallelism"---Scope---Terms "price parallelism" and "conscious parallelism" refer to a situation where competing firms adjust their prices in an identical or nearly identical manner and at the same or nearly the same time---Such conduct alone does not establish a violation of competition law; it may raise concerns where it is accompanied by additional factors, commonly known as "plus factor" which indicate coordination or a departure from independent business decision-making.

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