CCP raids Fan Manufactures Association over suspected price fixing

ISLAMABAD, August 1: The Competition Commission of Pakistan (CCP) has conducted search and inspection of the premises of two leading electric fan manufacturers and their industry association in Gujrat, amid strong suspicions of cartelization and price fixing.
The enforcement action was carried out as part of an ongoing investigation into potential violations of Section 4 of the Competition Act, 2010, which strictly prohibits agreements or practices that have the object or effect of preventing, restricting, or reducing competition.
Acting under Section 34 of the Act, three CCP teams comprising duly authorized officers entered and searched the business premises of the undertakings. The teams secured documents, pricing records, and digital evidence relevant to the enquiry.
The Enquiry Committee examined three years of pricing data and obtained circulars issued by the industry association to its member undertakings. These circulars contained coordinated announcements of price increases for different fan variants. Moreover, price lists collected from various brands revealed strikingly similar pricing patterns, including: (i) multiple manufacturers revising prices on identical dates ;(ii) price differences between standard ceiling fan models being as low as 0.05% ; and (iii) in several cases, competing brands charging and revising exactly the same prices for certain variants.
These consistent and uniform pricing practices raise strong concerns of collusion and a prima facie violation of Section 4 of the Competition Act.
The fan industry holds significant importance in Pakistan’s economy, and CCP remains vigilant in monitoring the sector to ensure that consumers are protected from artificially inflated prices and anti-competitive conduct.
The CCP is mandated under the Competition Act, 2010 to promote free competition across all sectors of the economy, enhance efficiency, and safeguard consumer interests against practices such as price fixing, collusion, and abuse of market power.