The Federal Competition and Consumer Protection Commission is currently investigating alleged price fixing attempts by Point of Sales agents and will impose sanctions upon those found guilty.
The transaction charges of PoS agents in Nigeria, Lagos Chapter are set to increase, as announced by the Association of Mobile Money and Bank Agents.
According to the Public Relations Officer for the Lagos Chapter, Stephen Adeoye, PoS agents in the state now have updated price lists and are working to form a task force to implement the modifications.
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.”
However, the FCCPC stated in a statement issued by its Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, on Wednesday that price fixing is illegal and distorts the market, preventing innovation and efficiency, and negatively impacting customers.
It 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.”
According to the commission, the FCCPA imposes severe penalties for cartels or other such coordinated or collusive behaviour among competitors, even at the association level. It stated that it is prepared to fully enforce the law.
It advised AMMBAN to refrain from attempting 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.”
According to the commission, it has launched an inquiry to see whether claims purportedly made by AMBAN (about pricing adjustments) are real, and if evidence reveals that these assertions are true, it will take appropriate regulatory action to address the conduct.
