The Competition Commission of Pakistan (CCP) has started its investigation 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, 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.
Published in The Express Tribune, August 9th, 2012.
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