Competition Commission of Pakistan gets a new lease of life

Since its inception in October 2007, the CCP has investigated a number of sectors. including the sugar industry.

ISLAMABAD: President Asif Ali Zardari re-promulgated on Friday the Competition Ordinance 2009, ending apprehensions that the government would give in to the pressure of business cartels which are against the Competition Commission.

The re-promulgation allows the commission to continue to curb unfair business practices, including abuse of dominant position (monopolistic attitude), agreements (cartelisation) and mergers or acquisition of small businesses by powerful groups in a sector.

The CCP was formed in October 2007 after abolition of the Monopoly Control Authority.

The Supreme Court had given the government the deadline of Nov 28 to get ordinances promulgated by the previous regime validated by parliament.

The National Assembly’s Standing Committee on Finance had unanimously approved the Competition Bill on Nov 11, but it failed to get through the assembly after objections were raised by some members.

CCP Chairman Khalid Mirza welcomed the government’s decision and said a strong competition law was needed so that no sector was able to hold the country’s economy hostage.

‘The fruit of a strong competition authority will be visible in two to three years,’ he said, adding that fair business practices and free market concepts would invite more innovation and investment in the country.

He said Pakistan’s economy had a history of cartelisation, including operation of public sector entities in a monopolistic environment.

‘This environment still prevails in the country even when the majority of businesses are in private hands,’ he said, adding that it was a weakness of economy that local industries had not prepared themselves for competition at the local and international levels.

‘Competition laws are meant to ensure efficiency of business sectors not only for the protection of the consumers but also to contest with international competitors,’ he said.

However, powerful business lobbies have been opposing decisions taken by the commission and its orders issued since February last year against a number of sectors for violating competition regulations and taking actions which were not in the interest of consumers.

The commission has taken decisions against the cement sector; fertiliser groups; several textile tycoons; the ICI Pakistan; telecom giants Mobilink, China Mobile and Ufone; PIA; Bahria University; Institute of Chartered Accountants (ICAP); Pakistan Steel Mils; the three stock exchanges and the Pakistan Banking Association.

The commission also took a decision against the All Pakistan Akhbar Farosh Federation and All Pakistan Newspapers Society (APNS) and initiated inquiries against ports and the sugar sector.

source: dawn