Pakistan, July 3 -- The Competition Commission of Pakistan (CCP) has fined two companies for making an illegal deal worth Rs1.13 billion. United Distributors Pakistan Limited (UDPL) and International Brands Limited (IBL) were found guilty of signing a non-compete agreement. The CCP said this deal was against Section 4 of the Competition Act, 2010.

The deal stopped UDPL from entering the human pharmaceutical distribution market for three years. In return, IBL paid them Rs1.131 billion. This payment was shared with the Pakistan Stock Exchange (PSX), but no approval was taken from CCP in advance.

The CCP called the agreement a clear case of market-sharing. It said the deal harmed healthy competition and created unfair advantages for IBL. I...