The Commission's Proceedings

Pursuant to §37 of the Act, the Commission is empowered to initiate enquiries either on its own, upon a reference made to it by the Federal Government, or on receiving a complaint by an undertaking.

The process of filing a complaint by any business or individual are given in Regulations 16-19 of the Commission’s General Enforcement Regulations Where an enquiry finds a prima facie violation, the Commission issues a show cause notice to the concerned party(ies) giving them an opportunity to explain their point of view, before adjudicating upon the issue and passing an order.

Sanctions

§38 of the Act empowers the Commission to impose a financial penalty of up to PKR 75 million or an amount not exceeding 10% of the annual turnover of the undertaking(s) found to be in violation of the Act. For non-compliance, including wilful abuse, interference, or obstruction of the Commission’s orders, notices, or requisitions, the Commission can impose a fine of up to PKR 1 million.

In the case of failure to seek the Commission’s clearance for any merger, acquisition, or joint venture, as stipulated above, the Commission may pass one or more orders under §31 of the Act which empowers the Commission to undo or prohibit a merger and/or impose penalties under §38 of the Act.

In the case of continued violation of a Commission’s Order, it can impose an additional fine of an amount of up to PKR 1 million per day until the violation ends. A failure to comply with the Commission’s order or directions constitutes a criminal offense punishable with imprisonment for up to 1 year or with a fine of up to PKR 25 million, or both.