KARACHI: The Competition Commission of Pakistan (CCP) has raided three entities linked to Lahore’s out-of-home advertising market as part of an inquiry into alleged cartel behaviour, including price fixing and coordinated bidding.
The CCP conducted inspections at two industry associations and an advertising agency, acting on a complaint that accused the groups of collectively fixing agency commissions and taking joint decisions on bids. The complainant also alleged that the associations blacklisted agencies and vendors that did not accept their terms.
Out-of-home advertising covers billboards, pole streamers, bus shelters, digital screens, vehicle branding and other public display media. Collective decisions on pricing or commissions in the sector can restrict competition and raise advertising costs.
The CCP said its teams collected material suggesting possible violations of Section 4 of the Competition Act, which prohibits associations from agreeing on prices or other commercial terms. The watchdog will issue show-cause notices if the inquiry confirms cartelisation.Chairperson of CCP Kabir Sidhu said industry associations have legitimate roles but must ensure their meetings do not involve anticompetitive coordination.
