In a bold enforcement move, the Competition Commission of Pakistan (CCP) has raided two major electric fan manufacturers and their industry association in Gujrat amid suspicions of cartelization and price fixing. This marks a significant escalation in CCP’s efforts to protect consumer interests and enforce fair market practices in Pakistan’s manufacturing sector.
Acting under Section 34 of the Competition Act, 2010, three authorized CCP teams conducted on-site inspections, securing crucial documents, pricing records, and digital evidence. The investigation focuses on potential violations of Section 4, which prohibits any agreements or conduct that reduce or restrict market competition.
According to CCP findings, the fan manufacturers and their association appear to have engaged in coordinated pricing behavior. Circulars issued to member companies suggested synchronized price hikes, while pricing data revealed identical revision dates and near-identical price points—differences as low as 0.05%—across competing brands. In many cases, the exact same prices were being charged and revised simultaneously for similar fan models.
These patterns raise serious red flags about possible collusion within an industry that plays a vital role in Pakistan’s economy, especially in the summer months when fan sales peak. CCP has reaffirmed its commitment to ensuring free market dynamics by clamping down on anti-competitive practices that lead to artificially inflated prices and harm consumers.
As the investigation continues, more insights are expected to surface regarding how widespread the price coordination may be. The CCP’s proactive stance is a strong signal to all sectors that regulatory oversight is active and growing stronger in the face of market manipulation.
