Fakoyejo OlalekanThe Federal Competition and Consumer Protection Commission (FCCPC) has revealed that it is illegal for Point of Sale (POS) agents to jointly agree on fixing prices for their services.
In a statement on Wednesday, 6 June, FCCPC’s executive vice-chairman and Chief Executive Officer, Babatunde Irukera, said the act is price fixing, which the Federal Competition and Consumer Protection Act (2018) (FCCPA) is against.
Join our WhatsApp ChannelIrukera disclosed that POS agents involved will be issued stiff penalties upon investigation into the price-fixing activity, as such action distorts the market.
His statement followed the disclosure by the spokesperson of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Stephen Adeoye, who said the Lagos chapter of POS agents has agreed on a new fixed price for withdrawal, transfer and other services.
Adeoye said the POS agents reached the decision to jointly raise the price for their services to curb overcharging and fraud, but FCCPC said it was against the FCCPA and affects competition.
Irukera said: “The Federal Competition and Consumer Protection Act (2018) (FCCPA) 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,” he added.
In the statement, the FCCPC boss said cartels or any similar coordinated or collusive conduct among competitors, even at association levels, will be sanctioned, stating further that the commission will not hesitate to apply the laws when “there is sufficient evidence that a business has, or is participating in any such prohibited conduct or arrangement either directly, or indirectly,” the statement reads.
Irukera told the POS agents to cease and desist from conducting similar arrangements: “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.”
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