CAT dismisses Dairy Farmer Association’s appeal

KARACHI: The Competition Appellate Tribunal (CAT) has resumed hearings after an eight-month pause, dismissing the appeal filed by the Dairy Farmer Association Karachi (DFAK) as withdrawn in its first session.

The tribunal was informed during proceedings that the appeal was not valid, as no adverse order had been made against the appellant. Legal counsel for the Competition Commission of Pakistan (CCP) explained that DFAK was registered as a society under the Societies Registration Act, 1860, and the penalty in question had been imposed on the association’s representative rather than the association itself.

The tribunal accepted the CCP’s legal argument and instructed the appellant’s counsel to withdraw the appeal. The appeal was then dismissed with the appellant’s consent.

In December 2024, the CCP had imposed penalties on representatives of three dairy associations in Karachi for collusive practices aimed at influencing the price of fresh milk, violating the Competition Act, 2010. The penalties included Rs1 million for one representative and Rs500,000 for two others.

The CCP initiated its investigation following media reports of a sharp rise in milk prices across Karachi. The investigation revealed that the three associations were involved in anti-competitive practices that led to significant price increases, impacting consumers in Karachi and surrounding areas.