The Competition Commission of Pakistan (CCP) has directed Dewan Salman Fibre Ltd to file an undertaking on behalf of the Board of Directors and an affidavit on behalf of its Chief Executive Officer.
The undertaking is to affirm that they have not organised themselves in any formal association in any manner and the informal association that does exist, in no manner meets or co-ordinates to adopt or fix parallel pricing or levels of output.
The hearing was held under the Chairmanship of Khalid A. Mirza and attended by members, Abdul Ghaffar, Rahat Kaunain Hassan and Maleeha Mimi Bangash. While senior executive (Mergers, Cartels, Monopoly and Trading) and Registrar assisted the Commission during the hearing, said a CCP press release.
The Commission also heard four other leading polyester staple fibre (PSF) manufacturers namely Pakistan Synthetics Ltd, ICI Pakistan Ltd, Rupali Polyester Ltd and Ibrahim Fibres Ltd during the last week's hearing. They were directed to file similar undertakings and affidavits by January 15.
Monopoly Control Authority (MCA) had initiated suo moto inquiry under Section 14 of the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 (Ordinance) against the Staple Fibre Manufacturers (PSF) for colluding in parallel pricing as reported in an English daily.
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 case was initiated against the undertaking by the MCA under the provisions of Section 11 of the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 and was heard under the same provisions read with Section 59 of the Competition Ordinance, 2007.