The Federal Competition and Consumer Protection Commission (FCCPC) says an investigation has been launched into the price-fixing attempts by Point of Sales (PoS) agents.
The commission, then, said any PoS agent found culpable of fixing high prices will be sanctioned.
In a statement signed by its Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, the commission said the price-fixing is against the law which can also serve as market distortion, as well as prevention of innovation and efficiency.
Irukera made this known on Wednesday in reaction to the recent announcements by the PoS agents under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Lagos Chapter to increase their transaction charges.
The AMMBAN Lagos Chapter spokesman, Stephen Adeoye, said PoS agents now have new price lists in the state and are working to create a task force to enforce the changes.
He said, “To enforce this new price list is easy because we have a good relationship with the Lagos State Command, Police Force, and all the DPOs in the area. Very soon a task force will be set up in each zone so that they will work along with it.”
Reacting, FCCPC said, “The Federal Competition & Consumer Protection Act (2018) recognises indeed encourages the prerogative of businesses to organise in and as trade associations for acceptable purposes, such as ensuring and enforcing applicable standards and best practices, as well as a measure of self-regulation within the profession or trade.
“However, the same FCCPA copiously and extensively limits the scope and extent of such collaboration, particularly to exclude coordination with respect to scope or supply of services and price of services.
“The FCCPA expressly prohibits any price-fixing or agreement among undertakings (whether bilaterally or multilaterally) or by undertakings acting in consensus on the platform, or under the aegis of an association to fix prices, coordinate supply or any other commercially sensitive factors that can limit or substantially prevent competition; or otherwise distort the market.”
The commission stated that the FCCPA provides stiff penalties for cartels or any similar coordinated or collusive conduct among competitors, even at association levels. It said it is ready to enforce the law to its fullest extent.
While advising AMMBAN to desist from any attempt to fix its prices, it added, “To the extent that any combination of undertakings, including AMMBAN indeed met, agreed or decided to impose uniform or coordinated fees/tariffs for services this announcement should serve to ensure such undertakings cease and desist from that arrangement or similar discussions/conduct.”