The Competition Commission of Pakistan (CCP) has carried out raids on the offices of three out-of-home advertising sector companies in Lahore as part of an investigation into alleged cartelisation and price fixing.
According to CCP officials, the raids targeted two advertising associations and one advertising agency suspected of forming a cartel to fix commission rates, coordinate on bidding, and restrict competition in the outdoor media market.
The inquiry focuses on possible collusion in key segments of the out-of-home advertising sector, which includes billboards, pole streamers, bus shelters, digital screens, vehicle branding, and other public-space advertising formats. Authorities say that price fixing in these services harms competition and raises costs for businesses and consumers.
The investigation began after the CCP received a formal complaint from an advertising agency, alleging that certain associations were fixing agency commission rates and coordinating bids. The complaint also stated that agencies and vendors who refused to accept these terms were blacklisted.
Under Section 4 of the Competition Act, any agreement among businesses to fix prices or set business conditions jointly is prohibited. CCP teams gathered documents and digital evidence during the raids that suggest possible violations of the law.
An inquiry report will be submitted to the Commission once evidence review is completed. If cartelisation is confirmed, the CCP is expected to issue show-cause notices to the associations and agencies involved.
CCP Chairman Dr Kabir Sidhu said that while industry associations play an important role in sectoral development, they must not be used as platforms to form cartels or manipulate the market for financial gain.
