The Competition Commission of Pakistan (CCP) has initiated investigation against an association of media houses suspected to be involved in management of members' advertisement business, reflecting a possible collusion among media houses. During a presentation before the Senate Standing Committee on Finance, CCP Chairman Dr Joseph Wilson said formal inquiries under section 37 of the Competition Act have been initiated against 4 sectors.
Firstly, an association of automobile dealers suspected to be involved in fixing prices of repair and paint jobs. Secondly, an association of media houses suspected to be involved in management of members' advertisement business. Thirdly, poultry feed manufacturers suspected of fixing prices in connivance. Fourthly, the cement manufacturers suspected of collectively fixing prices.
The committee members inquired about the names of the media houses, but the CCP officials said that it would not be appropriate to disclose details in the presence of media in the committee. When the committee members insisted of sharing details of the media case, Mueen Batlay, CCP Member Competition Policy, Research, Cartels and Trade Abuses stated that they are carrying out investigation in a case of media houses. An association of media houses suspected of involvement in management of members advertisement business. If there is an understanding among the media houses about collectively setting the advertising rates, then there would be no competition in the market. It is a case of suspected collusion and the CCP is examining it threadbare. He added that the case is at an initial stage and investigation is under way. It is a case relating to 2013-14.
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