CCP BEGINS PROBE IN ALLEGED FORCED SALE OF LUBE OIL BY PSO TO CARTAGE CONTRACTORS

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enewspaper.com.pk
enewspaper.com.pk

ISLAMABAD, 8 AUGUST 2012: The Competition Commission of Pakistan (CCP) has started probe after receiving complaints from several Pakistan State Oil (PSO) cartage contractors, alleging that PSO is forcefully selling lube oil to them by deducting the price of such products from the payments due for cartage services.

Given the potentially anti-competitive nature of such actions, CCP has started to probe the matter in detail and solicited PSO’s response in the matter. However, despite a reminder, the reply is still awaited.

Forced sale of products may constitute an anti-competitive practice prohibited by the Competition Act, 2010. The practice of forced sales, which places unrelated obligation on trading parties for the conclusion of contracts, is barred under law and can amount to a prohibited agreement/practice or an abuse of dominance under the Act.

It would be pertinent to mention that CCP has consistently strived to promote competition and curb anti-competitive behavior in Pakistan economy. Since its inception, CCP has levied penalties to the tune of PKR 8.562 for the violation of the competition law.