Karachi: United Distributors Pakistan Limited has been fined by the Competition Commission of Pakistan (CCP) following proceedings related to a non-compete agreement with International Brands (Private) Limited. The CCP issued an order on July 2, 2025, imposing a penalty of 21.00 million PKR on the company for engaging in restrictive arrangements without obtaining the requisite exemption.

According to information available from the Pakistan Stock Exchange (PSX), the CCP's action follows disclosures made by United Distributors regarding the agreement, which were in line with regulatory requirements. The company had acknowledged internal delays in submitting an exemption application to the CCP. This delay led to the issuance of show-cause notices by the CCP after it became aware of the consideration received by United Distributors from International Brands.

The order, which was received by United Distributors on July 3, 2025, marks a significant development in the ongoing proceedings. The company, along with International Brands, is currently reviewing the order and consulting on potential legal remedies. They maintain that there are substantial grounds supporting their actions and compliance with applicable laws.

The financial implications of this penalty are being assessed as the companies deliberate their next steps. United Distributors has communicated the situation to the Trading Rights Entitlement Certificate (TREC) holders, as required under the designated market category.