OECD kpcdb

1. Competition Law

 

The Competition Act which was enacted on 13 October 2010 is the main legal instrument in Pakistan on competition policy. 

 

The objective of the Act is to engender free competition in all spheres of commercial and economic activity, enhance economic efficiency, and to protect consumers from anticompetitive behaviour.

 

Chapter II of the Act prohibits abuse of dominant position, anti-competitive agreements, and deceptive marketing practices and provides a merger regime.

 

General exclusions: There are no sectors excluded from the application of the Competition Act. The Competition Act applies to State-owned enterprises (SOEs).

 

Extra-territorial application: The Competition Act is applied to undertakings outside Pakistan which affects competition in domestic markets.

 

2. Competition Commission of Pakistan

 

The Competition Commission of Pakistan (“CCP”), established in 2007, is responsible for the enforcement of the Competition Act.

 

Since January 2015, the Commission comprises two Members, including the Chairperson. The Members are appointed by the Federal Government, and, from time to time, the Federal Government may increase or decrease the number of Members as considered appropriate.

 

Organisational structure of the CCP: The CCP, headquartered in Islamabad, had approximately 130 staff members in 2015.

 

It has the following departments: Advocacy, Cartels & Trade Abuses, Competition Policy & Research, Exemptions, Information Systems & Technology, Legal, Mergers & Acquisitions, Office of Fair Trade, Office of International Affairs, and Support Services.

 

Other regulators with competition powers: There are no sector regulators that have competition powers in Pakistan.

 

Competition advocacy: Under Article 29, the CCP has the powers to promote competition through advocacy. Its functions include reviewing policy framework for fostering competition and making suitable recommendations to the Federal Government and Provincial Governments for amendment to the Competition Act and any other laws that affect competition in Pakistan.

 

International co operation: Pakistan has not concluded any international co-operation agreements or Memorandums of Understanding regarding competition law.

 

3. Investigation

 

Initiation of investigation: According to Section 37(1), the CCP may, on its own or upon a reference made to it by the Federal Government, initiate enquiries into any matter relevant for the purpose of the Act.

 

According to Section 37(2), the CCP may also conduct an enquiry upon receipt of a complaint on alleged contravention of Chapter II. 

 

Powers of investigation: According to Section 33, for the purpose of a proceeding or enquiry, the CCP, with the same powers as are vested in a civil court under the Code of Civil Procedure, may require any undertaking to produce before or furnish to the CCP any information, books, accounts, or other documents.

 

Under Section 34, the CCP has the powers to enter and search premises, for reasonable grounds to be recorded in writing. The CCP has full and free access to any premises, place, accounts, documents or computer.

Under Section 35, the investigating officer of the CCP may by written order, signed by any two Members, enter any place or building by force, in the event that an undertaking refuses without reasonable cause to allow the CCP to exercise the powers under Section 34.

 

Failure to comply with investigation: According to the Fining Guidelines, the CCP may impose a penalty at an amount not exceeding PKR 1 million for undertakings knowingly abusing, interfering, impeding and obstructing the process of the CCP in any manner. 

 

4. Remedies and sanctions

 

Under Section 31, where the CCP finds a contravention of Chapter II, it may make orders as it may deem appropriate.

 

Under Section 38, the CCP may also impose administrative penalties for a contravention of any provision of Chapter II, at an amount not exceeding PKR 75 million or 10% of the annual turnover of the undertaking.

 

For non-compliance of any order, notice or requisition of the CCP, it may impose a penalty at an amount not exceeding PKR 1 million.

 

5. Appeal

 

According to Section 41, an appeal may be made before the Appellate Bench of the Commission in respect of an order made by any Member or authorised officer of the CCP. The appeal may be made within 30 days of the passing of the order. The CCP shall constitute Appellate Benches comprising not less than two Members to hear appeals under sub-section (1).

 

According to Section 42, an order of the CCP or of the Appellate Bench of the Commission may be made before the Competition Appellate Tribunal within 60 days of the communication of the order.

 

The Competition Appellate Tribunal consists of a Chairperson (who either has been a judge of the Supreme Court or is a retired Chief Justice of a High Court) and two technical members.

 

The orders of the Competition Appellate Tribunal may be appealed before the Supreme Court of Pakistan. Any person aggrieved by an order of the Competition Appellate Tribunal many prefer an appeal to Supreme Court within sixty days. 

 

6. Private Enforcement

 

Private enforcement is not available in Pakistan.