ISLAMABAD: The Competition Commission of Pakistan (CCP) has raided the offices of two leading fan manufacturing companies and their industry association in Gujrat over strong suspicions of price-fixing and cartelization.
According to the CCP, the action was part of an ongoing investigation into possible violations of Section 4 of the Competition Act, 2010, which prohibits any agreement or practice that limits or distorts competition.
Under Section 34 of the Act, three CCP teams, consisting of authorized officers, carried out search and inspection operations at the premises of the companies and the Fan Manufacturers Association.
During the raids, the teams collected important documents, pricing records, and digital data. The enquiry committee reviewed three years’ worth of pricing information and recovered circulars issued by the association. These circulars contained coordinated price hike instructions sent to various member companies.
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The investigation revealed that multiple fan manufacturers adjusted their prices on the same days, with nearly identical rates—sometimes differing by as little as 0.05%—for similar ceiling fan models. The CCP noted that this level of coordination suggests the companies may have been working together to control prices, which goes against competition rules.
The Commission pointed out that the fan sector holds economic significance in Pakistan, and said it would continue to keep a close watch to stop pricing manipulation and unfair practices. Under the Competition Act, 2010, the CCP is responsible for ensuring open market conditions and preventing businesses from taking advantage of consumers through coordinated pricing or other forms of market control.
