In a decisive move against anti-competitive practices, the Competition Commission of Pakistan (CCP) has raided the premises of two major electric fan manufacturers and their industry association in Gujrat, as part of an investigation into suspected cartelization and coordinated price fixing.
The enforcement action, carried out under Section 34 of the Competition Act, 2010, involved three separate teams of authorized officers who conducted searches, seizing pricing records, documents, and digital evidence believed to be relevant to the inquiry.
This investigation follows findings by the Commission’s Enquiry Committee, which reviewed three years of price data and circulars issued by the fan manufacturers’ industry association. These circulars reportedly outlined coordinated price increases across various fan models, raising red flags about potential violations of Section 4 of the Act, which bars any agreements that restrict competition.
According to the CCP, evidence collected from the manufacturers revealed strikingly similar pricing structures across competing brands. In some cases, companies revised their fan prices on the same dates, and the difference between competing standard ceiling fans was as low as 0.05 percent. Certain manufacturers were even found to have implemented identical price revisions for specific models.
“These practices raise serious concerns of collusive behaviour and a prima facie violation of Section 4,” the Commission stated in its press release.
The CCP emphasized the economic significance of Pakistan’s electric fan industry and warned that any attempts to manipulate prices or undermine fair competition would be dealt with firmly.
“The electric fan industry plays a significant role in the national economy,” the Commission noted, reaffirming its mandate under the Competition Act to safeguard market competition, improve economic efficiency, and protect consumers from anti-competitive conduct such as price fixing, collusion, and abuse of dominance.
The investigation remains ongoing as CCP officials analyze the seized records and continue to examine potential coordination among industry players.
