The Competition Appellate Tribunal has upheld the resolution of the Competition Commission of Pakistan (CCP) against M/s Reliance Paints Pakistan for fasten the retail prices of its effect, in breach of Section 4 of the contesting Act, 2010.
The CCP begin an inquiry after receiving a formal protest from Akzo Nobel Pakistan Ltd, which claimed that dependence Paint was fixing the minimum resale price for its products and also monitoring and discipline the dealers/distributors/retailers for non-compliance with its price directives.
The CCP’s inquiry report concluded that these practices were limit competition not only between the trader and distributor but also between dependence and its competitors as the retail price became intractable and no deduction could be offered by dealers to purchaser for Reliance’s products.
The Commission notice that the agreements/arrangements impose by Reliance Paints confined intra-brand contesting amongst its trader or distributors/retailers, which damage their capacity to compete on prices in the sale and dealing out of Reliance Paint’s products. As a result, the CCP imposed a penalty of R.s. 5 million on Reliance Paints.
Reliance Paints earnestly against the CCP’s order with the Competition pleader Tribunal. The Tribunal confirm the Commission’s detection regarding Reliance Paint’s contravention of Section 4 of the Act. Nevertheless, it reduced the penalty to R.s. 2.5 million
