Karachi Dairy Farmers Penalized for Price Fixing
Source: dairynews.today
The Competition Appellate Tribunal has upheld an antitrust ruling against leading dairy farmer associations in Karachi for colluding on milk prices, while reducing fines imposed on key members.
The Karachi Competition Appellate Tribunal has reinforced an antitrust ruling against major dairy associations found guilty of colluding to inflate milk prices. Fines for these associations were decreased from their original amounts, with each association receiving a Rs150,000 penalty, down from Rs1 million and Rs500,000.
This action followed an investigation by the Competition Commission of Pakistan (CCP), which uncovered coordinated price increases across the supply chain that were enforced through pressure tactics, such as threats to halt supply. Video evidence revealed farmers' leaders announcing the price hikes, further corroborated by findings of artificial shortage creation through stockpiling, particularly in rural Sindh. The CCP emphasized the need for commercial entities to refrain from sharing sensitive information that could facilitate anti-competitive practices.
This action followed an investigation by the Competition Commission of Pakistan (CCP), which uncovered coordinated price increases across the supply chain that were enforced through pressure tactics, such as threats to halt supply. Video evidence revealed farmers' leaders announcing the price hikes, further corroborated by findings of artificial shortage creation through stockpiling, particularly in rural Sindh. The CCP emphasized the need for commercial entities to refrain from sharing sensitive information that could facilitate anti-competitive practices.
