FCCPC Clears POS Operators of Price Fixing

The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that its examination of the recent rise in service charges by Point of Sale (PoS) operators does not indicate a “collaborative or coordinated approach.” According to Mr. Babatunde Irukera, the Executive Vice Chairman of the Commission, this assertion was made during an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

Irukera elaborated that the Commission arrived at this determination following thorough surveillance and spot checks carried out on members of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN).

According to him, “What we have learned is that this coordinated approach to proceed increase did not occur.” 

Earlier reports on collaborative price fixing 

It was reported in the media that FCCPC had issued a threat of prosecution against AMMBAN members for their involvement in collaborative price fixing, by the FCCPAct of 2018.  

Additionally, the Commission had issued an Order and Notice to AMMBAN, advising them to cease engaging in activities that infringe upon the law. It read, “Desist from the conduct that constituted an infringement of the law.” 

He further elaborated on the situation, that during the commission’s recent meeting with the association and from their in-depth investigation, collaborative price fixing did not occur. 

According to Irukera, even the national executive members of the association acknowledged that they did not partake in such conduct and would not do so in the future. 

In his words,

• “We met with the association some days ago, and our people have been embarking on aggressive surveillance and spot checks. 
• “What we have learned is that this coordinated approach to proceed increase did not occur.” 
• “National executive members of the association also noted that they did not and would not engage in that conduct.” 
• “It will be interesting to discover if this happened,” 

Why FCCPC cannot investigate banks’ excessive charges.  

When discussing the protection of bank customers from excessive bank charges, Irukera pointed out that the Banks and Other Financial Institutions Act (BOFIA) exclusively grants the Central Bank of Nigeria (CBN) the authority to regulate banks.  

He stated, “Under BOFIA, CBN regulates banks to the statutory exclusion of FCCPC,” he said.