The competition body has slapped penalties on Aisha Steel Mills and International Steels after finding them involved in cartelisation and price fixing in violation of Section 4 of the Competition Act, 2010. A CCP bench comprising Chairman Dr Kabir Ahmed Sidhu and Member Bushra Naz passed the final order and imposed the penalty of Rs648.3 million on Aisha Steel and Rs914.2 million on International Steels.
The bench determined that both undertakings had engaged in the most egregious form of cartelisation and price fixing, which is prohibited under Section 4(1) read with Section 4(2)(a) of the Competition Act.
The commission's detailed order notes that Aisha Steel and International Steels coordinated pricing strategies, fixed flat steel prices and exchanged commercially sensitive information, thereby distorting competition and harming consumers. The inquiry report suggested that the steel cartel increased prices by an average of 111%, with raw steel prices surging by Rs146,000 per tonne over three years.
In determining the quantum of penalty, the bench applied its guidelines, which emphasise two key objectives: deterring undertakings from engaging in anti-competitive conduct and reflecting the seriousness of the infringement. The bench evaluated the seriousness, duration and aggravating factors before deciding the penalty.
The order highlights that flat steel is a critical commodity in Pakistan's economy, used in multiple sectors including construction, automotive, appliances and agriculture. Any manipulation of prices has a direct impact on consumers, businesses and the overall economy. The bench observed that Pakistan's steel sector remains largely unregulated compared to other jurisdictions such as the United States, the European Union and the United Kingdom, where regulatory oversight ensures transparency and accountability. The commission, therefore, underscored its responsibility to protect competition and consumers in such a vital sector.
