by In a significant enforcement action, the Competition Commission of Pakistan (CCP) conducted a major raid on the premises of two prominent electric fan manufacturers and their industry association in Gujrat. This operation comes amid strong suspicions of cartelization and price-fixing in violation of Section 4 of the Competition Act, 2010.
🕵️ What Triggered the Raid?
As part of an ongoing investigation, CCP investigators were dispatched to inspect the business premises of both manufacturers under the authority of Section 34 of the Act. They collected documents, pricing records, and digital evidence relevant to potential anti‑competitive conduct .
CCP Raids Two Leading Fan Manufacturers in Gujrat Over Possible Cartelization.
🔍 Evidence of Collusion
Analysis by the CCP’s Enquiry Committee revealed:
- Three years of coordinated price hike announcements, circulated by the industry association to its member companies.
- Uniform price revisions across brands—sometimes occurring on the same dates, with differences in standard ceiling‑fan models as small as 0.05%.
- Identical charges for specific fan variants across competing companies .
These patterns suggest possible collusion in prices rather than independent pricing decisions — a prima facie violation of Section 4, which prohibits anticompetitive agreements between businesses.
📈 Broader Context: CCP’s Crackdown Continues
This action is part of the CCP’s broader enforcement agenda in FY 2024–25, in which the Commission initiated 24 new investigations—11 into cartelization and 13 into deceptive marketing. Several major industries, including steel, transport, poultry, and education, were also under scrutiny .
Notably, earlier in 2025, the CCP had issued Show Cause Notices to steel giants ISL and ASML for alleged cartel behavior in flat steel pricing.
⚖️ Why This Matters
The Gujrat fan industry is a key segment of Pakistan’s manufacturing ecosystem—with more than 300 units operating in the region . If cartelization is confirmed, consumers may have suffered from inflated prices and reduced product quality due to lack of competition.
The CCP’s strict enforcement sends a clear signal: industry associations and dominant players cannot coordinate pricing, and trade bodies must not perpetuate anti-competitive practices.
👥 Consumer & Industry Implications
- Consumers: Could have been paying simulated or excessive prices due to collusive pricing rather than market dynamics.
- Manufacturers: Independent or smaller units may have been pushed to exit the market due to enforced price controls by larger players.
- Regulatory Impact: The CCP’s action reinforces its mandate to promote fair pricing, curb monopolistic behavior, and uphold consumer rights under the Competition Act, 2010.
📌 What to Expect Next
- CCP Review & Adjudication: Following evidence gathering, CCP may issue Show Cause Notices or impose penalties if violations are confirmed.
- Possible Leniency Claims: Whistleblowers or co-operating firms could receive leniency under CCP procedures, as seen in prior electrical equipment cartel cases.
- Wider Deterrent Effect: CCP’s proactive stance is expected to discourage similar anti-competitive conduct in other sectors such as appliances, electronics, and consumer goods.
Final Thoughts
The CCP’s raid on Gujrat’s major fan manufacturers underscores a zero-tolerance policy for price-fixing and market manipulation. As investigations unfold, this move may pave the way for stronger competition, fairer prices, and greater innovation in local manufacturing. For consumers and small businesses alike, it reinforces that fair market practices are being monitored—and enforced.
