Islamabad: (RightNow) The Supreme Court has imposed a Rs 3 crore fine on the Pakistan Vanaspati Manufacturers Association for fixing the prices of ghee and cooking oil. The court upheld the decision of the Competition Commission of Pakistan.

A two-member bench declared that collective price fixing violates Section 4 of the Competition Act. The court emphasized that prices must be set independently and not through trade associations.

The court clarified that collectively set prices restrict competitive business. Although these prices may seem beneficial, they lack legal justification.

The Supreme Court stated that businesses should independently determine prices according to their commercial needs. Joint price setting is not a substitute for competitive pricing.

It is noteworthy that bypassing the federal government to consult with PVMA violated the Competition Act. The court confirmed the CCP’s decision and maintained the proceedings.