The Competition Commission of Pakistan (CCP) on Saturday imposed a fine amounting to Rs10 million on two major transport associations for illegally colluding to fix freight rates, reported 24NewsHD TV channel on Tuesday.
According to the CCP, this freight rate fixing has led to an increase in costs for various industries, ultimately placing a burden on the end consumer.
The CCP ruled that the Transporters of Goods Association and the Local Goods Transport Association each face a penalty of Rs5 million. The Commission's decision stems from finding that the associations engaged in an "illegal cartelization" to set prices.
The CCP has directed both associations to pay the fine within 30 days. The CCP has warned that a further penalty of Rs10,000 per day will be levied if the fine is not paid by the deadline.
The Commission rejected the associations' plea for leniency, which was based on a claim of "unawareness of the law," clearly stating that ignorance of the law is not an excuse.
A CCP official, Dr. Kabir Sidhu, issued a stern warning to all trade bodies and associations, advising them to refrain from price fixing or engaging in any form of information exchange that could harm a competitive environment.
This action highlights the CCP's commitment to enforcing competition laws and protecting consumer interests in the country.
Reporter: Ashraf Khan