COMPETITION ACT, 2010
The history of competition law in Pakistan started from 1970-2010. Parliament of Pakistan, on 23 September 2010, unanimously approved Competition Act 2010. A change duration adhered to for the Competition Bill 2009 in October when it existed to the Pakistan National Assembly for legislative authorization as it dramatically relocated in the direction of a short-term stage to a long-term one Competition Act 2010 was developed for advertising a reasonable and also affordable economic climate that outright was an area for a whole business field while shielding customers and also securing financial effectiveness as a result of the existence of anti-competitive methods and also perspectives.
Competition law in Pakistan was previously regulated under the Monopolies and Restrictive Trade Practices Ordinance (MRTPO) 1970, which was designed specifically for breaking up cartels in Pakistan. At present, the Competition Act 2010 is the prime legislation that governs the prohibitions of anti-competitive conduct, and unlike its predecessor, covers a broader range of anti-monopolistic practices rather than just focusing on decartelization.
The Act is further supplemented by numerous rules and regulations promulgated by the Commission from time to time, along with case laws of similar jurisdiction, such as the European Union, the United Kingdom, and the United States.
The Competition Act, of 2010 is a state-of-the-art modern law that gives the Competition Commission of Pakistan legal and investigative instrumentalities and powers to stimulate free competition in all spheres of commercial and economic activities, enhance economic efficiency, and protect consumers from anti-competitive behavior.
The Act is applicable to all undertakings in Pakistan regardless of their public or private ownership and to all actions or matters that can affect competition in Pakistan. Although essentially an enabling law, it briefly sets out procedures relating to the review of mergers and acquisitions, inquiries, imposition of penalties, grant of leniency, and other essential aspects of law enforcement.
Briefly, the law prohibits situations that tend to lessen, distort, or eliminate competition such as actions constituting an abuse of market dominance, competition-restricting agreements, and deceptive marketing practices.
One of the objectives of the Competition Act is to deter deceptive marketing practices and to ensure consumers receive truthful information to help them make informed buying decisions. The Act applies to anyone inside or outside of the company who is promoting the supply or use of a product, service, or any business interest through:
There are five pillars of the Competition Act 2010 and they are as under:
1.??Section 3: Abuse of Dominant Position
2.??Section 4: Prohibited Agreement
3.??Section 10: Deceptive Marketing Practice
4.??Section 11: Merger Control
5.??Section 29: Competition Advocacy
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THE COMPETITION COMMISSION OF PAKISTAN (CCP)
The?Competition Commission of Pakistan CCP, formerly?Monopoly Control Authority, is an?independent agency?quasi-regulatory, quasi-judicial body of the?Government of Pakistan?for the enforcement of?economic competition?laws in?Pakistan?that help ensure healthy competition. It was created in 2007 by the?President of Pakistan?through the promulgation of the Competition Ordinance, 2007 replacing the Monopoly Control Authority, later?Parliament of Pakistan?passed Competition Act, 2010 to give legal cover and powers to the commission.
This includes the CCP’s ability to forcibly search the premises of companies and businesses, and seize documents and/or devices for the purposes of investigating anti-competitive conduct. Over the years since its inception, the Commission has imposed penalties of up to PKR 75 million for abuse of dominance and deceptive marketing practices, annulled anti-competitive contracts, and even reversed certain monopolistic mergers. For its efforts, the Commission has been lauded by the international community, including the United Nations as a “crucial entity leading Pakistan’s economy towards competition-oriented markets.”
The CCP prohibits abuse of a dominant position in the market, certain types of anti-competitive agreements, and deceptive market practices. It also reviews mergers of undertakings that could result in a significant lessening of competition.
Function & Powers of the Competition Commission of Pakistan ?
The Competition Act 2010 Section 28 states that the?functions?and?powers?of the Commission are to:
?(a)???????initiate proceedings and make orders;
?(b)???????conduct studies for promoting competition;
?(c)???????conduct inquiries;
?(d)???????give advice to any undertaking which has asked for it in relation to the consistency of its proposed actions in relation to the law;
?(e)???????engage in competition advocacy; and
?(f)???????take all other actions necessary for implementing the Act.
Section 7 of the Companies Act 2017
Powers and functions of the Commission:-
(1) The Commission shall exercise such powers and perform such functions as are conferred on it by or under this Act.
(2) The powers and functions of the Commission under this Act shall be in addition to and not in derogation to the powers and functions of the Commission under the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997).