Abuse of dominant position: IHC allows CCP to proceed with probe against firm

ISLAMABAD: The Islamabad High Court has allowed the Competition Commission of Pakistan (CCP) to proceed with its enquiry against M/s Transworld Associates (Private) Limited for alleged abuse of dominant position.

The CCP initiated the enquiry and sent letters to M/s Transworld regarding its suspected abuse of dominant position, potentially violating Section 3 of the Competition Act, 2010.

M/s Transworld had challenged the CCP’s letters in court and obtained a stay order, halting the CCP from concluding its enquiry. During the court proceedings, the CCP informed the court that it had internally concluded that the complaint against Transworld raised suspicions of breaching Section 3 of the Act, warranting an enquiry.

The Court recognized the CCP’s stance and allowed it to continue with the enquiry. However, it directed the CCP to communicate with Transworld by issuing a rectificatory letter, outlining the gist of the reasons for initiating the enquiry as held by the Honourable Supreme Court in the Dalda Foods Case.

In Dalda Foods Judgment, the Supreme Court of Pakistan upheld the CCP’s statutory powers regarding the gathering of information and conducting of enquiries.

The SC three-member bench emphasized that there is no restriction on the CCP’s general regulatory powers to gather information. The Court also emphasized the obligation of undertakings to fully comply with the CCP’s directives for the provision of information. The case was dismissed by the Supreme Court in CCP’s favour.

Copyright Business Recorder, 2024