CCP conducts search and inspection of PSAA

ISLAMABAD – A team of the Competition Commission of Pakistan (CCP) Friday conducted search and inspection of the offices of the Pakistan Shipping Agents Association (PSAA) in Karachi to impound documentary proof of the Association’s alleged involvement in anti competitive decision making.
The CCP had taken notice of the active role being played by PSAA in recommending rates/tariffs to its member undertakings in prima facie violation of Section 4 of the Competition Act, 2010, says a press release.
Documentary evidence produced before the Commission in the form of letters and minutes of meetings prima facie raised suspicion as to the activities and role of PSAA with respect to ship agency services tariff/charges. The commission observed that the rates/tariffs recommended by PSAA prima facie suggest to its member undertakings a target range of minimum and maximum prices they can charge to their customers.
Although a recommended range of charges is issued as guideline, however, it needs to be verified that how association is operating in the matter and why even such recommendations are made when free economic decisions are to be encouraged on part of its members.
The suspected price fixing through suggested/targeted range is likely to distort competition as members tend to price within this range, rather than independently arriving at their prices.
CCP requested PSAA to forward copies of letters and circulars issued in last two years to member undertaking to notify the rates of various tariff/charges in respect of ship agency services, to which PSAA did not provide any satisfactory information and provided only recommended rates/tariff for September, 2008 and February, 2010. Hence, a search and inspection of the PSAA was necessitated by the association’s reluctance to cooperate with CCP in providing certain necessary documents. CCP is empowered under Section 34 of the Competition Act, 2010 to conduct such search and inspections. Important data has been confiscated from the Association’s office that will be analysed by the commission’s enquiry officers.