CCP directs PSF manufacturers to file affidavits

10 Jan '08

2 min read

Four leading Polyester Staple Fiber (PSF) manufacturers have been directed by the Competition Commission of Pakistan (CCP) to file undertakings/affidavits that they have not organized themselves in any formal association in any manner and the informal association that does exist, in no manner meets or coordinates to adopt or fix parallel pricing or level of output.

The PSF manufacturers denied that they have quoted any prices in the media or provided any information in this regard.

The Commission has directed them to file affidavits and undertakings by January 15, 2008 in order to verify the above facts.

The manufacturers are:
1. M/s. Pakistan Synthetics Ltd
2. M/s. ICI Pakistan Ltd
3. M/s. Rupali Polyester Ltd
4. M/s. Ibrahim Fibers Ltd.

The hearings were held under the Chairmanship of Mr. Khalid A. Mirza. Mr. Abdul Ghaffar, Mrs. Rahat Kaunain Hassan and Miss. Maleeha Mimi Bangash, Members were also present.

Senior Executive (Mergers, Cartels, Monopoly and Trading) and Registrar assisted the Commission during the hearings.

Monopoly Control Authority (MCA) had initiated suo-moto inquiry under Section 14 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 (Ordinance) against the Staple Fiber Manufacturers (PSF) for colluding in parallel pricing as reported in the daily Business Recorder.

The manufacturers were heard by the MCA and were also served with Show Cause Notices.

In response to the Notices the PSF manufacturers denied providing any news agency or media organization any price quotation of their products or acting in collusion.

The cases were initiated against the undertakings by the MCA under the provisions of Sections 11 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 and were heard under the same provisions read with Section 59 of the Competition Ordinance, 2007.

Competition Commission of Pakistan

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