The 23rd meeting of the Competition Consultative Group (CCG) was held in Karachi on 10 December 2021. The participants were briefed on the Commission’s advocacy and policy initiatives in the e-commerce and SME sectors, the developments on legal fronts and the recent enforcement actions. Along with the Chairperson Ms. Rahat Kaunain Hassan, and Members Ms. Shaista Bano, Ms. Bushra Naz Malik, Mr. Mujtaba Ahmad Lodhi, the session was attended by the seniorlevel officials from the regulatory bodies, corporate sector, SMEs, online trading platforms, Pakistan Stock Exchange (PSX), chambers of commerce, and consumer associations. While briefing the participants about the Commission’s performance, the Chairperson stated that the pace of enforcement has increased with the imposition of the highest ever penalty of around PKR 40 billion in the sugar sector. Moreover, several key enquiries are underway in important sectors. During the last year, the Commission has completed 28 enquiries, conducted 17 search inspections, and passed 12 orders. Discussing the challenges overcome recently, she stated that the Commission has started receiving the 3% of the fee and charges collected by specific regulators (PTA, SECP, NEPRA, OGRA and PEMRA). Moreover, the Competition Appellate Tribunal is now functional, which shall aid in clearing the backlog of cases. The Chairperson also mentioned the general difficulty in concluding proceedings due to the parties continuously seeking injunctive relief from Courts even at nascent stages of an enquiry, such as a call for information and search and inspections. Besides that, presentations were given on initiated studies i.e. “Competition and Trade Practices Regulation in the Era of E-Commerce, Big Tech and Data Sciences” and “Improving Economic Efficiency in Small-and-Medium Enterprises in Pakistan” (which represent 2 key targets in the Commission’s Strategic Vision 2021). The study on e-commerce highlights possible competition concerns in the e-commerce/online platforms market, which may fall under Section 3 (abusive conduct by dominant platforms) and Section 10 (deceptive marketing practices) of the Act and analyzes regulation strategies in more developed countries across the globe as well as other countries in the Region. The Chairperson clarified that the CCP does not aim to become a data protection agency or over-regulate, a view which PSX and SECP senior officials endorsed along with applauding the said initiative. Instead, the study aims to provide guidelines serving as a minimum benchmark of basic disclosures companies should adhere to, to avoid deceptive marketing practices. The ultimate aim is to facilitate businesses and create a competitive, innovative, and fair marketplace for online businesses in Pakistan to promote growth and allow them to compete with other businesses/platforms globally. Other industry participants stressed the need to maintain a balance where the onus/burden of compliance should remain on the seller. The second study reviews the SME Policy Framework in Pakistan and based on two surveys concerning demand-side constraints and supplyside issues in SMEs’ growth and challenges in SME financing, offers recommendations to the Government of Pakistan and other concerned entities focusing on competition aspects, i.e., to ensure a level-playing field for SMEs to compete, which shall lead to the growth of the SME sector. In this regard, the representative from the Banks Association highlighted that banking companies and SBP have collaborated to create an SME Asaan Finance Scheme (SAAF) to help provide financing to SMEs and PSX has also initiated the GEM Board, which has more lenient listing requirements and a lower listing fee for SMEs. During the CCG meeting, certain other competition concerns were also highlighted relating to the polyester yarn industry, the membership mechanism of PASHA, milk prices (which the Commission clarified was already an ongoing issue) and the steel industry in relation to the cost of raw materials for the construction sector.
The 23rd meeting of the Competition Consultative Group (CCG) was held in Karachi on 10 December 2021. The participants were briefed on the Commission’s advocacy and policy initiatives in the e-commerce and SME sectors, the developments on legal fronts and the recent enforcement actions.
Along with the Chairperson Ms. Rahat Kaunain Hassan, and Members Ms. Shaista Bano, Ms. Bushra Naz Malik, Mr. Mujtaba Ahmad Lodhi, the session was attended by the seniorlevel officials from the regulatory bodies, corporate sector, SMEs, online trading platforms, Pakistan Stock Exchange (PSX), chambers of commerce, and consumer associations.
While briefing the participants about the Commission’s performance, the Chairperson stated that the pace of enforcement has increased with the imposition of the highest ever penalty of around PKR 40 billion in the sugar sector. Moreover, several key enquiries are underway in important sectors. During the last year, the Commission has completed 28 enquiries, conducted 17 search inspections, and passed 12 orders.
Discussing the challenges overcome recently, she stated that the Commission has started receiving the 3% of the fee and charges collected by specific regulators (PTA, SECP, NEPRA, OGRA and PEMRA). Moreover, the Competition Appellate Tribunal is now functional, which shall aid in clearing the backlog of cases. The Chairperson also mentioned the general difficulty in concluding proceedings due to the parties continuously seeking injunctive relief from Courts even at nascent stages of an enquiry, such as a call for information and search and inspections. Besides that, presentations were given on initiated studies i.e. “Competition and Trade Practices Regulation in the Era of E-Commerce, Big Tech and Data Sciences” and “Improving Economic Efficiency in Small-and-Medium Enterprises in Pakistan” (which represent 2 key targets in the Commission’s Strategic Vision 2021).
The study on e-commerce highlights possible competition concerns in the e-commerce/online platforms market, which may fall under Section 3 (abusive conduct by dominant platforms) and Section 10 (deceptive marketing practices) of the Act and analyzes regulation strategies in more developed countries across the globe as well as other countries in the Region. The Chairperson clarified that the CCP does not aim to become a data protection agency or over-regulate, a view which PSX and SECP senior officials endorsed along with applauding the said initiative. Instead, the study aims to provide guidelines serving as a minimum benchmark of basic disclosures companies should adhere to, to avoid deceptive marketing practices. The ultimate aim is to facilitate businesses and create a competitive, innovative, and fair marketplace for online businesses in Pakistan to promote growth and allow them to compete with other businesses/platforms globally.
Other industry participants stressed the need to maintain a balance where the onus/burden of compliance should remain on the seller.
The second study reviews the SME Policy Framework in Pakistan and based on two surveys concerning demand-side constraints and supplyside issues in SMEs’ growth and challenges in SME financing, offers recommendations to the Government of Pakistan and other concerned entities focusing on competition aspects, i.e., to ensure a level-playing field for SMEs to compete, which shall lead to the growth of the SME sector. In this regard, the representative from the Banks Association highlighted that banking companies and SBP have collaborated to create an SME Asaan Finance Scheme (SAAF) to help provide financing to SMEs and PSX has also initiated the GEM Board, which has more lenient listing requirements and a lower listing fee for SMEs.
During the CCG meeting, certain other competition concerns were also highlighted relating to the polyester yarn industry, the membership mechanism of PASHA, milk prices (which the Commission clarified was already an ongoing issue) and the steel industry in relation to the cost of raw materials for the construction sector.
© CCP 2024, Competition Commission of Pakistan ©All rights reserved
