The Competition Commission of Pakistan (CCP) has taken enforcement action against two top electric fan manufacturers in Gujrat, raiding their offices and that of their industry association on suspicion of price-fixing and collusion.
The crackdown comes amid growing concerns that some players in the electric fan sector may be coordinating prices, in violation of Section 4 of the Competition Act, 2010, which bars any agreements that hinder market competition.
Acting under Section 34 of the same law, CCP’s investigation teams conducted simultaneous raids and collected documents, pricing data, and digital files from the firms involved.
Initial findings from the Enquiry Committee pointed to strikingly uniform price patterns among rival manufacturers. These included:
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Fan prices being changed on the same dates by different brands.
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Minuscule price gaps of less than 0.05% between similar models.
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Identical pricing and revisions for certain fan variants across competing brands.
The commission also recovered circulars from the industry association sent to manufacturers, allegedly advising uniform price hikes—raising red flags over possible cartelized behavior.
“This level of pricing similarity indicates more than coincidence,” a CCP official stated, suggesting a prima facie breach of competition laws.
The fan industry, a major part of Gujrat’s manufacturing economy, plays a vital role in Pakistan’s consumer market. CCP said it would continue to monitor the sector closely to prevent artificial price inflation and protect consumer welfare.
Under the Competition Act, 2010, CCP is tasked with ensuring free competition, deterring market abuse, and enhancing economic transparency.