Competition Tribunal Upholds Fine on Reliance Paints for Price Fixing

Karachi: The Competition Appellate Tribunal has confirmed a penalty on M/s Reliance Paints Pakistan, affirming the company’s violation of competition laws by fixing retail prices and restricting dealer discounts.

According to Competition Commission of Pakistan, the case against Reliance Paints originated from a complaint by Akzo Nobel Pakistan Ltd, which accused Reliance Paints of setting a minimum resale price for its products. The Competition Commission’s investigation found that these actions not only limited competition among dealers and retailers by making pricing inflexible but also restricted competition with other brands, as discounts on Reliance products were effectively prohibited.

The original inquiry revealed that Reliance Paints’ pricing agreements hindered intra-brand competition among its distributors and retailers, impairing their ability to offer competitive pricing. This led the Competition Commission to impose a PKR 5 million fine. However, following an appeal by Reliance Paints, the Tribunal decided to reduce the penalty to PKR 2.5 million while still upholding the violation.

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