ISLAMABAD: The Competition Commission of Pakistan (CCP) has initiated an investigation into possible anti-competitive behaviour behind a sharp increase in fees being charged by private schools.

The inquiry was launched after concerns were raised by people, especially parents, that the private schools increase the fees exorbitantly every year without any justification, particularly without any corresponding increase in the quality of education.

In the first phase of the investigation, crucial information about entities involved in the schooling business is being gathered.

Also read: Govt fails to regulate private schools

Information pertaining to fee increases over the past three years has been summoned from various schools so that the CCP has the data required to take action under the Competition Act, 2010.

The CCP will determine whether the fee increase is a result of anti-competitive practices such as cartelisation or abuse of dominance.

According to a CCP spokesman, Section 3 of the act prohibits unreasonable increases in prices by dominant market players, while Section 4 bars collective fixing of prices by competitors.

“Once the process is completed, the CCP may impose substantial penalties on any undertaking involved in anti-competitive behaviour,” he said. “Anyone who wishes to lodge a complaint or provide evidence of anti-competitive behaviour can contact the CCP through its email [address] or the office number available at the website of the CCP,” the spokesman said in a statement.

Published in Dawn, August 20th, 2015

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