CCP conducts raids in Lahore over suspected cartelisation

The Competition Commission of Pakistan (CCP) conducted raids on three Lahore-based entities involved in the out-of-home media advertising market as part of an inquiry into alleged cartelisation, price fixing, and coordinated bid rigging in the sector.

In a statement on Thursday, it said the raids, including those carried out at two industry associations and an advertising agency, were part of an ongoing inquiry into alleged cartelization in the advertising sector.

“The inquiry was launched after a complaint by an advertising agency, which alleged that the association formed a cartel to fix agency commissions and took collective decisions on bids.”

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The commission said that the association was also accused of blacklisting agencies and vendors that did not comply with its terms and conditions.

“Out-of-home (OOH) advertising included billboards, pole streamers, bus shelters, digital screens, vehicle branding, and other public-space displays.

“The sector involves multiple agencies and vendors, and any collective fixing of prices, commissions, or bid decisions can distort competition and increase advertising costs.”

Section 4 of the Competition Act, 2010, prohibits associations of undertakings from making collective decisions on prices and other business terms, said the statement.

CCP teams collected evidence indicating potential violations of this provision, and after the investigation is completed, the findings will be placed before the Commission, and if cartelization is established, “show cause notices will be issued to the concerned undertakings”.