The Competition Commission of Pakistan (CCP) on Wednesday conducted raids at three entities linked to the out-of-home (OOH) advertising sector in Lahore as part of an inquiry into alleged cartelization, price fixing, and coordinated bid decisions. The action targeted two industry associations and one advertising agency.
OOH advertising includes billboards, pole streamers, bus shelters, digital screens, vehicle branding and other public-space displays. The sector involves multiple vendors and agencies, and any coordinated fixing of prices, commissions or bidding decisions can distort competition and increase advertising costs.
According to the CCP, the inquiry was initiated after an advertising agency filed a complaint alleging that an industry association had formed a cartel to fix agency commissions and collectively determine bid outcomes. The association was also accused of blacklisting agencies and vendors that refused to comply with its conditions.
Section 4 of the Competition Act, 2010 bars associations of undertakings from making collective decisions on pricing or other commercial terms. CCP teams collected evidence during the raids that may indicate violations of this provision. Once the investigation is completed, the findings will be presented before the Commission. If cartelization is established, show cause notices will be issued to the undertakings involved.
CCP Chairman Dr. Kabir Sidhu said industry associations play an important role in sector development but must ensure meetings do not involve any anti-competitive discussions.
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