ISLAMABAD: The Competition Commission of Pakistan (CCP) has successfully recovered a penalty of Rs 5 million from Wateen Telecom (Pvt) Ltd. This recovery was carried out under Section 40(2)(a) of the Competition Act, 2010, which empowers the CCP to recover penalties by attaching the bank accounts of non-compliant entities.
The penalty was originally imposed by the CCP following an inquiry triggered by numerous complaints from residents of the Defence Housing Authority (DHA) Lahore. The residents had voiced concerns about the lack of alternative service providers and the substandard quality of services provided by Wateen Telecom.
The CCP’s investigation revealed that DHA Lahore and Wateen Telecom had entered into an exclusive agreement, granting Wateen Telecom sole rights to provide telecommunication and media services in specific phases of DHA Lahore. This arrangement was found to violate Section 4 of the Competition Act, 2010, which prohibits agreements that limit consumer choice.
On March 22, 2011, the CCP issued an order imposing fines of Rs 10 million on DHA Lahore and Rs 5 million on Wateen Telecom. The DHA Lahore had already submitted its portion of the fine.
Later, both undertakings challenged the CCP’s decision by filing an appeal before the Competition Appellate Tribunal (CAT). In July 2024, the CAT dismissed the appeals, thereby upholding the penalties initially imposed by the CCP.
Following this ruling, the CCP exercised its authority under Section 40(2)(a) of the Competition Act, 2010, to recover the outstanding penalty from Wateen Telecom.
Copyright Business Recorder, 2024
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