CCP cracks down on fan manufacturers

August 1, 2025 (MLN): The Competition Commission of Pakistan (CCP) has searched the offices of two major electric fan manufacturers and their industry association in Gujrat over alleged price fixing and cartelization.

The operation was part of an ongoing investigation into possible violations of Section 4 of the Competition Act, 2010, which prohibits agreements that limit or distort competition in any form.

Under Section 34 of the Act, three CCP teams conducted search and inspection operations at the business premises, securing key documents, pricing records, and digital evidence relevant to the probe.

The enquiry team reviewed three years of pricing data and collected circulars from the association that directed its members to implement coordinated price hikes. In addition, price lists obtained from various fan brands showed almost identical pricing behavior.

Examples included manufacturers revising prices on the same dates, minimal price differences of just 0.05% between standard ceiling fans, and some brands quoting and adjusting prices in exactly the same manner.

Such uniform pricing patterns, the CCP said, suggest possible collusion and a prima facie breach of competition law.

With the fan industry playing a crucial role in Pakistan’s economy, the CCP affirmed its commitment to ensuring fair market practices and protecting consumers from inflated prices and anti-competitive behavior.

The watchdog emphasized its role in promoting free competition, market efficiency, and consumer welfare under the mandate of the Competition Act, 2010.

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