Out-of-home advertising sector: CCP conducts raids on three entities in Lahore

ISLAMABAD: The Competition Commission of Pakistan (CCP) teams had conducted raids on three entities linked with the out-of-home media advertising market in Lahore. The raids were carried out as part of an inquiry into alleged cartelisation, price fixing, and coordinated bid decisions in the sector.

Out-of-home (OOH) advertising includes 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.

The raids, including those carried out at two industry associations and an advertising agency, were part of an ongoing inquiry into alleged cartelisation 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. The association was also accused of blacklisting agencies and vendors that did not comply with its terms and conditions.

Section 4 of the Competition Act, 2010 prohibits associations of undertakings from making collective decisions on prices and other business terms. The CCP teams collected evidence indicating potential violations of this provision. After the investigation is completed, the findings will be placed before the Commission, and if cartelisation is established, show cause notices will be issued to the concerned undertakings.

Chairman CCP Dr Kabir Sidhu said that while industry associations serve useful functions for industrial development, they must remain cautious in meetings and ensure that no anticompetitive discussions take place.

Copyright Business Recorder, 2025