In its first hearing in eight months following its re-composition, the Competition Appellate Tribunal (CAT) dismissed an appeal filed by the Dairy Farmer Association Karachi against penalties imposed for collusive practices as withdrawn.
During the proceedings, the Tribunal was informed the appeal was not maintainable, as no adverse order was passed against the appellant. The counsel for the Competition Commission of Pakistan (CCP) clarified that the Dairy Farmer Association was registered as a society under the Societies Registration Act, 1860, and the penalty in question had been imposed on the association’s representative, not the association itself.
Accepting the CCP’s legal position, the Tribunal directed the appellant’s counsel to withdraw the appeal. With the appellant’s consent, the Tribunal subsequently dismissed the appeal as withdrawn.
In December 2024, the CCP had imposed penalties on representatives of three dairy associations in Karachi for collusive practices aimed at influencing the price of fresh milk—violating Section 4(1) and 4(2)(a) of the Competition Act, 2010.
The penalties imposed were Rs. 1 million on Shakir Umer Gujjar of M/s Dairy and Cattle Farmers Association; and PKR 500,000 each on Haji Akhtar Gujjar of M/s Dairy Farmer Association Karachi and Haji Sikandar Nagori of M/s Karachi Dairy Farmers Association.
The CCP had initiated its inquiry following widespread media reports of a sharp rise in milk prices across Karachi. Investigations confirmed that the three associations, operating at various stages of the fresh milk supply chain, were actively involved in anti-competitive practices that led to a significant price hike affecting consumers in Karachi and surrounding areas.