ISLAMABAD – Competition Appellate Tribunal (CAT) upheld decision by Competition Commission of Pakistan (CCP), confirming that Pakistan Steel Mills (PSM) abused its dominant market position in the sale of low-carbon steel billets.
Tribunal agreed with CCP’s findings that enterprise engaged in anti-competitive practices by favoring a specific buyer, thereby restricting fair access to essential steel products. Although the Tribunal maintained that a violation occurred, it reduced the original penalty from Rs25 million to Rs5 million, citing the limited time period during which the misconduct took place.
The case originated in 2009 when the CCP initiated a suo motu inquiry following media reports and a complaint from M/s Frontier Foundry (Pvt.) Ltd. The complainant alleged that PSM had granted preferential treatment to Abbas Group, leading to unfair disadvantages for other market participants.
CCP’s investigation found that PSM had halted the supply of low carbon steel billets between November 2008 and January 2009 without providing any objective justification. This conduct, according to the Commission, breached Section 3 of the Competition Ordinance, 2007, which prohibits abuse of dominance.
In its ruling, the Tribunal noted that PSM failed to inform all potential buyers about the availability of products, effectively granting exclusive access to a single buyer group. This behavior, it concluded, resulted in market distortion and was in clear violation of Sections 3(2)(g) and 3(2)(h) of the Ordinance.
The decision is being seen as a key precedent in ensuring accountability of dominant market players and reinforcing fair competition principles in Pakistan’s industrial sectors.
Notices issued to leading steel mills in Pakistan for cartelization
