Islamabad: The Islamabad High Court (IHC) has issued an order upholding the constitutionality of the Competition Act, 2010 and the Competition Commission of Pakistan (CCP).

The decision was announced in court by Justice Babar Sattar on September 16, 2021. The order was issued in WP 4942/2010 titled, “Islamabad Feeds and others v Federation of Pakistan and others”.

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On the constitutionality of the competition law, the court has held that the Parliament is the competent legislature to promulgate laws to regulate trade, commerce and intercourse across provinces and within any part of Pakistan under Article 151 of the Constitution. Since the Competition Act, 2010 is a law that regulates the individual right to engage in trade and business in the interest of competition in order to provide for free trade, commerce and intercourse throughout Pakistan, the Parliament is competent to promulgate such law. In other words, the Federation of Pakistan has the legislative competence to promulgate the Competition Act, 2010 and consequently the Competition Act, 2010 is intra vires the Constitution.

This order of the IHC adds on to the unanimous view of a three-member Lahore High Court (LHC) bench that has already declared, through its decision in WP 9518/2009 titled, LPGAP v Federation of Pakistan, the Competition Act, 2010 as within the legislative competence of the Parliament.

As a result, there remains no doubt as to the constitutionality of the Competition Act, 2010.

Copyright Business Recorder, 2021