ISLAMABAD   -   The Competition Commission of Paki­stan (CCP) has issued show-cause no­tices to ten steel suppliers for collusive bidding. The CCP has issued show-cause notices to ten steel structure suppliers involved in procurement tenders floated by various power distribution compa­nies (DISCOs) for the alleged collusive bidding, a prima facie violation of Sec­tion 4 of the Competition Act, 2010, said a press release issued here on Monday.

The ten undertakings include M/s. AM Associates (Pvt) Ltd, M/s. Ajmer Engi­neering Electric Works (Pvt) Ltd, M/s. Khalifa Sons (Pvt) Ltd, M/s. Siddique Sons Engineering (Pvt) Ltd, M/s. Vision Engi­neering (Pvt) Ltd, M/s. AW Engineering (Pvt) Ltd, M/s. FN Power (Pvt) Ltd, M/s. Gujranwala Cable (Pvt) Ltd, M/s. AH As­sociates (Pvt) Ltd, and M/s. Process Dy­namics (Pvt) Ltd. The CCP took suo motu notice and initiated an enquiry under Sec­tion 37(1) of the Competition Act, 2010. During the enquiry, search and inspec­tions were also conducted at the premises of three Lahore-based companies, where critical documents and records were im­pounded for further examination. During the enquiry, bidding data from 2015 to 2022, obtained from all DISCOs, particu­larly regarding the procurement of trans­mission towers, was analysed.

Economic evidence revealed a con­sistent pattern of bidding where these companies appeared to have submitted identical or near-identical rates, with dif­ferences as small as 0.001% to 1%. Out of 357 tenders evaluated, 135 showed signs of collusion, including identical rates, di­vision of quantities, sole participation, and bid rotation. Notably, M/s. AM Asso­ciates, M/s. Ajmer Engineering, and M/s. Khalifa Sons were found to have engaged in collective decision-making regarding the rates and quantities quoted, with the apparent aim of manipulating tender outcomes for mutual benefit.

The enquiry report found that this collusive behavior included mutual agreements on the number of firms par­ticipating in tenders, predetermined price-fixing, and strategic non-partic­ipation to ensure that the preselected firm would win. Such practices consti­tute a, prima facie, violation of Section 4(2)(a)(b)(c)(e) of the Competition Act, 2010. The CCP’s enquiry further concluded that the anti-competitive be­havior of these ten companies extends beyond provincial boundaries, affecting market dynamics across Pakistan.