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ISLAMABAD, Oct 14 (APP): The Competition Commission of Pakistan (CCP) on Tuesday imposed a penalty of Rs 5 million each on the Transporters of Goods Association (TGA) and Local Goods Transport Association (LGTA) for fixing freight rates.
Both associations violated Section 4 of the Competition Act, 2010, which prohibits agreements that fix prices or restrict competition. They have been directed to deposit the penalty within thirty (30) days, said a news release.
The Bench, comprising Chairman CCP Dr. Kabir Sidhu and Member Bushra Naz, found that the associations had engaged in rate-fixing through collective deliberations and circulars, thereby restricting independent pricing decisions of individual transporters.
While determining the penalty, the Bench applied the Guidelines on Imposition of Financial Penalties, which require that fines reflect both the seriousness of the infringement and act as a deterrent to future violations. The Commission also considered the financial position of the respondents and the gravity of the offence.
The CCP’s inquiry revealed that the associations enforced fixed freight rates from Port Qasim to destinations across the country, including Sindh, Balochistan, and adjoining areas, causing spillover effects across supply chains and increasing costs for multiple sectors such as textiles, cement, chemicals, and food.
The associations had argued that their members lacked awareness of competition law and sought leniency. The CCP rejected this plea, reaffirming that “ignorance of law is no excuse” and that all commercial entities are bound to comply with the Competition Act.
The order further warns that failure to pay the penalty will attract an additional fine of PKR 10,000 per day and possible criminal proceedings under Section 38 of the Act.
Chairman Dr. Kabir Ahmed Sidhu urged all trade associations to refrain from price coordination and sharing of sensitive commercial information, emphasizing that such conduct undermines fair market competition and harms consumers.