In a significant move to curb anti-competitive practices, the Competition Commission of Pakistan (CCP) has raided the offices of two major electric fan manufacturers and their industry association in Gujrat over alleged cartelization and price manipulation.
According to an official statement, the raids were conducted under Section 34 of the Competition Act, 2010, as part of an ongoing probe into possible violations of Section 4, which prohibits agreements or practices that distort or reduce competition in the market.
Three authorized CCP teams searched the business premises of the companies and secured key pricing documents, digital evidence, and circulars issued by the fan manufacturers’ association. These circulars reportedly contained coordinated price hike announcements across different fan models.
The CCP’s Enquiry Committee, which has been examining three years’ worth of pricing data, found alarming trends suggesting collusion:
Multiple companies raised prices on exactly the same dates.
The price difference between similar fan models was as little as 0.05%.
Competing brands set and revised identical prices for certain variants.
Such uniform pricing patterns indicate a prima facie case of cartel behavior, the CCP said, warning that such conduct violates the law and harms consumers by inflating prices artificially.
Electric fans are a major consumer product in Pakistan, especially during the summer season, and Gujrat is considered the country’s hub of fan manufacturing. The CCP emphasized that maintaining competitive markets in essential industries like this is critical to protect consumers and ensure economic fairness.
The watchdog reaffirmed its commitment to enforcing the Competition Act, 2010, which aims to promote market efficiency, prevent collusion, and safeguard consumer rights against abuse of market power.
