The Federal Competition and Consumer Protection Commission, FCCPC, has launched an investigation into cartel and anti-competitve conduct in the shipping and freight forwarding industry.
FCCPC said five companies within the shipping and freight forwarding industries were searched on the orders of the Federal High Court.
Babatunde Irukera, the Executive Vice Chairman of FCCPC, explained that the search was carried out due to potential infringements of the Federal Competition and Consumer Protection Act 2018.
In a statement he signed, Irukera disclosed that the five affected companies participated in a coordinated anti-competitive conduct that affect the market and engendered the continued high freight rates in Nigeria.
According to the statement: “Monday, October 25, 2021: On Monday, October 18th 2021, the Commission executed a judicial search warrant and order of the Federal High Court to search and gather information/evidence in furtherance of an open and active investigation of potential infringements of the Federal Competition & Consumer Protection Act 2018 (FCCPA) on five (5) companies within the shipping and freight forwarding industry.
“Prior to the execution of the search warrant and order of the court, the Commission had gathered credible and actionable intelligence sufficient to establish probable cause and reasonable basis for the court to issue a warrant and enter an order permitting executives and operatives of the Commission to conduct a search of the companies named in the warrant and order.
“Essentially, the intelligence indicate that the five companies identified in the warrant (as well as others who were neither subject of the warrant nor targets of the search) have over a period of time, within and outside Nigeria participated in, or coordinated anti-competitive conduct that materially affect or distort the market in Nigeria, including preventing fair competition, and engendering continuing high freight rates and associated costs to, and in Nigeria.”