ISLAMABAD: The Competition Commission of Pakistan (CCP) has ordered transport companies to show the details of reduction in fares and asked them to display fare list of their routes for intra-city and intercity transportation.
The CCP is going to determine whether anti-competitive practices such as cartelisation or abuse of dominance are being used to deprive customers of major benefits. If it is proved, transport companies will have to face a major penalty in weeks ahead.
The CCP wrote letters to district coordination officers (DCOs) of major cities seeking information on this account under Competition Act 2010. The CCP had initiated a countrywide inquiry into the possible anti-competitive behaviour behind rising prices of essential food commodities in the informal sector.
Federal Minister for Finance Ishaq Dar wants to see reduction in commodity prices but it will be quite difficult for the CCP to establish any cartel in the informal sector. The price control is not the mandate of the CCP so it will have to establish any cartel or abuse of dominance to penalise those who are fleecing consumers in the commodity market at the retail level, which is mainly run by individuals in their towns and cities without establishing any association.
