Cat Upholds Rs40 Million Penalty On Udpl And Ibl

On February 24, 2026, the Competition Appellate Tribunal (CAT) upheld a cumulative penalty of Rs 40 million imposed by the Competition Commission of Pakistan (CCP) on United Distributors Pakistan Limited (UDPL) and International Brands (Private) Limited (IBL) for violating Section 4 of the Competition Act, 2010. The Tribunal confirmed that the companies had entered into an anti-competitive non-compete agreement, which effectively eliminated UDPL as a competitor in the pharmaceutical market. The CCP had found that UDPL received a substantial payment of PKR 1.131 billion from IBL in exchange for agreeing not to distribute human pharmaceutical products in Pakistan for three years. This arrangement was deemed a financial incentive that restricted competition and created barriers to market entry. As stated in the ruling, "the agreement restricted competition and constituted a prohibited market-sharing arrangement," highlighting the serious implications of such anti-competitive practices (Business Recorder, 2026).