If you remember, in October the Competition Commission of Pakistan (CCP) issued a notice to Pakistan Automobile Manufacturers Authorised Dealers Association (PAMADA) about cartelisation and price fixing. Well, you will be happy to know that CCP has imposed a penalty of Rs. 140 million on those grounds to PAMADA.
The hefty penalty was imposed after CCP conducted an inquiry on then alleged involvement of PAMADA and its participating members in cartelisation in the 3 relevant areas, price setting on spare parts, price setting on body work and restriction of moving of experienced staff.
After the charges were proved, the 4 person bench at CCP, which comprises of Chairman CCP, Vadiyya Khalil, Ikram Ul Haque Qureshi, Mueen Batlay and Dr. Shahzad Ansar issued the order for penalizing PAMADA.
The issued order declared PAMADA guilty of setting prices in the markets of body works and genuine spare parts along with restricting employees from switching jobs in the auto industry, which is a violation of Section 4 of the Competition Act that prohibits such decisions which can prevent, reduce and restrict healthy competition in the market.
The breakup of the Rs. 140 million fine is as follows:
- Rs. 100 million for price fixing in the body repair works.
- Rs. 25 million for prohibiting discounts on spare parts, which also comes in price fixing.
- Rs. 15 million for restricting the movement of employees in the auto sector.
The CCP further warned PAMADA and its members to discontinue such collusive and oligopolistic practices.
what about the Bribes PAMADA. giving to government for no other competition to get in Pakistan Market … this Fine does not matter to PAMADA in my opinion.
Local assemblers should be banned from further production and we should only have imports no nation has to do everything by itself we can make up for the auto imports by exporting either labour or agricultural goods…
These auto makers will bribe these CCP officials with 25% of this fine and in a revised report you will see these same members will give a clean chit. i dont think it will take more than couple of months.
We shouldn’t be making such negative statements against these regulators. At least they are doing something that no one else is doing. And for purposes of clarity, show cause notice was served to PAMADA and 43 dealerships. The dealerships have not been fined because they have not been found in violation of the competition laws. There is also a difference between PAMADA and PAMA. PAMADA is the dealerships’ association and PAMA is the manufacturers association. We need to have at least our facts straight before we start with the mud slinging.
fine…. will be recovered from consumers …. end of story
CCp is dead as a door nail………thats all i can say and captains of automobiles will pinch people,s hard earned moey.
Simply when Govt is ruled by corrupt practices all the cruel capitalists rules the roost.
Good Job Done…keep it up CCP….