Background of the Case:

The Commission fined Bahria Town (Private) Limited PKR 2 million for abusing its dominant position and restricting Nayatel from providing cable, internet and telephony (CIT) services to the residents of phase 1-6 of Bahria Town, Rawalpindi in violation of Section 3 of the Competition Act, 2010.

Order:

The Commission held that he relevant geographical market was not, contrary to the assertions of Bahria Town and PTCL, the twin cities of Islamabad and Rawalpindi, but rather consisted of phases 1-6 of Bahria town as identified in the enquiry report.

The Commission also held that Bahria Town 100 % market share in the relevant market as it had exclusive rights to administer the said territory, and it had misused its dominance by not granting the right of way to Nayatel and by:

a. Applying or asking Nayatel to quote revenue sharing percentage which were dissimilar than what it was charging to PTCL as it placed Nayatel at a competitive disadvantage in violation of Section 3 of the Competition Act;

b. Creating conditions which exclude Nayatel from competing in the relevant market in violation of Section 3 of the Competition Act; and

c. refusing to deal with Nayatel to lay down its CIT infrastructure/network in the relevant market in violation of Section 3 of the Competition Act.

The Commission held that this act of refusal was discriminatory, exclusionary and resulted in loss of any choice for consumers and restriction of competition in the market.

The Commission imposed a penalty of Rs. 2 Million on Bahria Town and ordered it to grant ‘right of way’ on a fair, reasonable and competitive terms and prices for laying down CIT infrastructure. Additionally, Nayatel was also asked to ensure that while laying down and installing its fiber-optic cable, it should use the best technology and reinstate footpaths and all infrastructures to the satisfaction of Bahria Town.

CURRENT STATUS:

Bahria Town filed appeal before CAT, but he same was dismissed by CAT. Bahria Town deposited the penalty and complied with the order.