Islamabad: (RightNow) The Supreme Court has declared the collective pricing of ghee and cooking oil illegal, imposing a fine of 3 crore rupees on the Pakistan Vanaspati Manufacturers Association. The court ruled that collective pricing violates the Competition Act.

A two-member bench of the Supreme Court endorsed the stance of the Competition Commission of Pakistan (CCP) and the Competition Appellate Tribunal, stating that collective pricing restricts competitive practices. The court emphasized that each business entity should independently determine its prices.

The court noted that even though lower prices benefit consumers, collective pricing is not justified. The aim of public interest does not legitimize price fixing.

This decision encourages businesses to set their prices independently, which is essential for maintaining a competitive market environment. The court advised that matters of pricing should be referred to the CCP.

It is noteworthy that under Section 4 of the Competition Act, collective pricing is a legal violation. The purpose of the Competition Commission is to promote free competition in the market and prevent unfair trade practices.