CAT upholds CCP dairy cartel ruling, cuts penalties

KARACHI: The Competition Appellate Tribunal has upheld an antitrust ruling against Karachi’s leading dairy farmer associations for colluding on milk prices, while reducing fines imposed on key members.

The tribunal ordered all three associations to submit written undertakings pledging not to engage in future price-fixing. Penalties were reduced to Rs150,000 each from earlier fines of Rs1 million and Rs500,000, following appeals.

The Competition Commission of Pakistan (CCP) launched a probe after a sharp rise in milk prices in Karachi. Investigators found the associations coordinated price hikes at every level of the supply chain and used pressure tactics, including threats to halt supply, to enforce compliance.

Video footage captured a farmers’ leader announcing the price increase, with additional evidence confirming its citywide implementation. The inquiry also uncovered stockpiling in ice factories to create artificial shortages, enabling profiteering in rural Sindh.The CCP reiterated that business groups must avoid sharing sensitive commercial information or enabling anti-competitive practices.