Fixation of parallel price: four PSF manufacturers directed to file undertaking

Four leading Polyester Staple Fiber (PSF) manufacturers have been directed by the Competition Commission of Pakistan (CCP) to file undertaking/affidavits that they have not fixed parallel pricing.
A statement said that the PSF manufacturers denied of quoting any prices in the media or provided any information in this regard. The commission has directed them to file affidavits and undertakings by January 15, 2008 to verify the above facts. The manufacturers included Pakistan Synthetics Ltd, ICI Pakistan Ltd, Rupali Polyester Ltd, Ibrahim Fibers Ltd. The hearings were held under the Chairmanship of Khalid A Mirza, Abdul Ghaffar, Rahat Kaunain Hassan and Maleeha Mimi Bangash, members were also present.
Senior Executive (Mergers, Cartels, Monopoly and Trading) and Registrar assisted the Commission during the hearings. Monopoly control Authority (MCA) had initiated suo moto inquiry under Section 14 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 (Ordinance) against the Staple Fiber Manufacturers (PSF) for colluding in parallel pricing as reported in the daily Business Recorder.
The manufacturers were heard by the MCA and were also served with Show Cause Notices. In response to the Notices the PSF manufacturers denied providing any news agency or media organisation any price quotation of their products or acting in collusion.
The cases were initiated against the undertakings by the MCA under the provisions of Sections 11 of the Monopolies and Restrictive Trade practices (Control & Prevention) Ordinance, 1970 and was heard under the same provisions read with Section 59 of the Competition Ordinance, 2007.
He submitted that the undertaking has since been registered and assured compliance with the Commission's directions in future. He requested for condonation of the penalty imposed by the MCA. The commission considering the fact that the undertaking complied with its order and taking a lenient view ordered to waive the fine.