The Competition Commission of Pakistan (CCP) has taken strict action against two major steel producers, Aisha Steel Mills Ltd (ASML) and International Steels Ltd (ISL), imposing a combined fine of Rs1.5 billion for engaging in price-fixing and collusion.
According to the CCP investigation, both companies coordinated their pricing strategies, which led to a 111% increase in flat steel prices between 2020 and 2023. This artificial inflation affected industries and consumers alike, violating fair competition rules under the Competition Act 2010.
Evidence gathered during inspections showed that both companies made identical price revisions within short intervals, suggesting active coordination at the executive level. Internal communications and market data confirmed that the firms were operating like a cartel rather than independent competitors.
The CCP has directed Aisha Steel Mills to pay Rs. 648 million and International Steels Rs. 914 million within 60 days. Failure to comply will result in additional penalties and possible legal proceedings.
This decision highlights the CCP’s ongoing commitment to ensuring market transparency and protecting consumers from unfair pricing practices. It also serves as a warning to other industries that collusion and cartelization will face strict legal consequences.
