The Competition Commission of Pakistan (CCP) has conducted raids on multiple entities linked to the out-of-home (OOH) advertising market in Lahore. These actions are part of an ongoing inquiry into suspected cartelization, price fixing, and coordinated bid manipulation within the sector.
Inquiry Targets Collusion in the OOH Advertising Market
The OOH advertising sector covers a wide range of public-space promotional platforms. These include billboards, pole streamers, bus shelters, digital screens, vehicle wraps, and other outdoor displays. The industry relies on various agencies and vendors. Therefore, any collective decision-making on pricing, commissions, or bids can restrict competition and raise advertising expenses.
The CCP raids targeted two industry associations and one advertising agency. The inquiry stemmed from a complaint filed by an agency alleging that one association coordinated price fixing and enforced strict commission structures. Additionally, the association was accused of blacklisting agencies and vendors that refused to comply with its directives.
Potential Violations of the Competition Act
Section 4 of the Competition Act, 2010 prohibits associations from fixing prices or dictating business terms through collective decisions. CCP teams gathered material indicating potential breaches of this provision. After completing the investigation, the Commission will review the findings. If cartel behavior is proven, show cause notices will be issued to the implicated parties.
CCP Stresses Responsible Conduct by Industry Groups
CCP Chairman Dr. Kabir Sidhu emphasized the important role industry associations play in enabling sector-wide development. However, he cautioned that such forums must avoid discussions or decisions that could undermine market competition. He noted that transparency and compliance are essential for ensuring fair practices within Pakistan’s advertising market.
A Critical Moment for Fair Competition in Advertising
The inquiry signals a significant push toward maintaining competitive integrity in the OOH advertising space. As advertising costs continue to shape marketing decisions for businesses across the country, ensuring a fair and transparent environment remains essential. The ongoing investigation aims to protect advertisers and consumers from inflated costs driven by collusive behavior.
The next steps depend on the inquiry’s outcome, which may reshape operational norms for agencies and associations involved in outdoor advertising.
