Key Concepts

In competitive markets, businesses compete not only on prices and quantities, but also to innovate and gain more customers. Competition law provides the rules by which market players work to provide a wider variety of higher quality goods and services to consumers at reasonable prices. The development of an economy led by competition and market forces depends on the widespread acceptance and implementation of competition rules. Thus, all market players and consumers would benefit from competition and enhance overall economic efficiency.

Undertaking Definition:

The key concepts of competition – how undertaking operate and behave in the market - are simple. An undertaking (or simply put, a business) is any entity in the market engaged in providing goods and/or services to consumers or other businesses. This definition is based on participation in commercial or economic activity and is not dependent on the legal form of the business. The term ‘undertaking’ includes ‘association of undertakings’ such as chambers of commerce and industry, trade associations, self-regulatory and professional bodies (e.g., accounting, management), etc.

Relevant Markets:

Businesses operate in relevant markets comprising of two components: the product and its geographic reach. The product market describes the goods or services that is bought and sold; the geographic market describes the geographical area in which the producers or sellers of the goods or service may operate. It could be the whole of Pakistan or any part of it.

---

The Competition Act is applicable to private and public businesses and institutions.

To preserve competitive markets and prevent and correct anti-competitive behaviour, the Commission is mandated to
monitor: