Pakistan : Edible oil price fixing: CCP raids transporters’ premises
The Competition Commission of Pakistan (CCP) has raided a Karachi-based transporters’ association over alleged price-fixing in edible oil transportation. The inquiry, triggered by multiple circulars fixing transport charges, is in its final stages. CCP reaffirmed its commitment to fair competition and warned against practices harming market efficiency and consumer welfare.
KARACHI: The Competition Commission of Pakistan (CCP) has conducted an ‘enter and search’ operation at the premises of a Karachi-based transporters’ association as part of an ongoing investigation into alleged anti-competitive practices in the transportation of edible oil.
According to CCP statement, the action was taken after CCP initiated a suo motu inquiry regarding multiple circulars issued by the association at various intervals, which reportedly fixed transportation charges for edible oil from Karachi’s seaports to other cities across Pakistan.
Price fixing by an association is per se violation of the Competition Act, 2010, as it eliminates independent pricing decisions among competitors, distorts market dynamics, and harms consumers, CCP claimed.
During the operation, CCP’s authorized officers impounded relevant documents and computer-stored data to assess the extent of the association’s role in setting transport rates. The inquiry is now in its final stages, with CCP aiming to conclude it at the earliest.
Reaffirming its commitment to fair competition, the CCP has urged businesses and trade associations to comply with competition laws and refrain from practices that hinder market efficiency and consumer welfare.
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Source : Business Recorder
