LAHORE: The Competition Commission of Pakistan (CCP) has imposed heavy financial penalties on Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) after finding both companies guilty of cartelization and price-fixing in violation of Section 4 of the Competition Act, 2010.
The CCP’s Bench, comprising Chairman Dr. Kabir Ahmed Sidhu and Member Ms. Bushra Naz, passed the final order imposing a penalty of Rs. 648,304,180 on Aisha Steel Mills Limited and Rs. 914,236,980 on International Steels Limited, according to a release issued on Wednesday.
The Bench determined that both undertakings had engaged in the most serious form of cartelization, namely price-fixing, which is prohibited under Section 4(1) read with Section 4(2)(a) of the Competition Act.
According to the detailed order, ASML and ISL coordinated pricing strategies, fixed flat steel prices, and exchanged commercially sensitive information, distorting competition and harming consumers. The CCP inquiry report revealed that the steel cartel increased prices by an average of 111%, with raw steel prices rising by Rs. 146,000 per tonne over three years.
In determining the penalty, the CCP Bench applied its Guidelines on Imposition of Financial Penalties, which emphasize deterring anti-competitive conduct and reflecting the seriousness of the infringement. The Bench assessed the gravity, duration, and aggravating factors before finalizing the penalty amount.
The order noted that flat steel is a critical commodity in Pakistan’s economy, used in sectors including construction, automotive, appliances, and agriculture. Manipulation of prices in such an essential market, it added, directly impacts consumers, businesses, and the broader economy.
The Bench also observed that Pakistan’s steel sector remains largely unregulated compared to jurisdictions such as the United States, the European Union, and the United Kingdom, where regulatory oversight ensures transparency and accountability. The Commission stressed its responsibility to protect competition and consumers in such a vital sector.
The inquiry found that the cartel remained operational for more than three years, from July 2020 to December 2023. Evidence presented during the proceedings confirmed that senior management, including the chief executive officers of both companies, were directly involved in the collusive conduct. No mitigating factors were identified that could reduce the culpability of either company.
Consequently, the CCP Bench held that both undertakings had committed deliberate and prolonged violations of the Competition Act and were not entitled to any leniency. The penalties represent 1% of the annual turnover of each company for the financial year 2021–2022. Both have been directed to deposit the penalty within 60 days from the date of the order. Failure to comply will result in an additional penalty of Rs. 100,000 per day and may lead to criminal proceedings under Section 38 of the Act.
Background of the Case
The CCP initiated an inquiry into the flat steel sector in May 2021 after receiving complaints regarding parallel pricing patterns among leading producers. The inquiry found prima facie evidence of cartel-like behavior involving Aisha Steel Mills Limited and International Steels Limited.
On June 12, 2024, the Commission conducted search and inspection operations at the premises of both companies, uncovering key evidence of coordinated conduct, including identical price revisions and information exchanges. The CCP’s analysis confirmed that both companies maintained identical and simultaneous price changes between July 2020 and December 2023, indicating collusion rather than independent pricing behavior.
Following the investigation, Show Cause Notices were issued to both undertakings in March 2025, outlining violations of Section 4 of the Competition Act, 2010, which prohibits agreements and decisions between competitors that restrict, prevent, or reduce competition in the market.
The CCP’s final order concludes this long-standing case, reaffirming the Commission’s commitment to curb cartelization and protect consumers from anti-competitive practices in key sectors of Pakistan’s economy.
