Could 25, 2025 (MLN): The Competitors Fee of Pakistan (CCP) has issued a cautionary discover to undertakings that enter into prohibited agreements with out in search of prior exemption, warning of economic penalties as much as Rs75 million or 10% of annual turnover.

The CCP has noticed that sure agreements between undertakings and their wholesalers, sellers, brokers, and retailers might represent a refusal to take care of non-dealers and infrequently embody restrictive provisions that would violate Part 4(2) of the Competitors Act, 2010.

These probably anti-competitive clauses might embody resale worth upkeep, market division, non-compete obligations, or different situations that prohibit competitors, as per the press launch issued.

Such vertical agreements — these between events working at totally different ranges of the availability chain — are void ab initio as they forestall, prohibit, or distort competitors.

Nevertheless, they could be particularly exempted by the CCP below Part 5, learn with Part 9 of the Act.

Exemption functions submitted to the CCP are evaluated utilizing the standards in Part 9 of the Act.

Agreements that promote manufacturing or distribution encourage technical or financial progress, or lead to effectivity features that outweigh any hostile affect on competitors, could also be granted an exemption.

The CCP has strongly suggested all undertakings to use for an exemption below Part 5 earlier than getting into into any such agreements to keep away from potential sanctions.

Below the Competitors Act, 2010, the CCP is empowered to make sure free competitors throughout all sectors of the financial system, aiming to boost financial effectivity.

It additionally protects shoppers from anti-competitive practices reminiscent of abuse of dominance, cartelization, misleading advertising, and mergers that will scale back market competitors.

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Posted on: 2025-05-25T17:18:54+05:00

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