Enforcement of competition law is a must for creating a level playing field for all businesses and ensuring economic growth by removing entry barriers and curbing anti-competitive practices in the economy. This was stated by the Chairperson, Competition Commission of Pakistan (CCP), Rahat Kaunain Hassain, while addressing a seminar on Competition Law, held at the Rawalpindi Chamber of Commerce and Industry (RCCI). On this occasion, the President RCCI Ali Raza Saeed Shah, Member CCP Abdul Ghaffar, Director General CCP Ikram-ul-Haq Qureshi, and a large number of RCCI Members were present. The CCP Chairperson said that the Competition Act, 2010 is a state of the art law that adequately protects consumers from exploitative pricing collusion or other forms of cartelization, which are designed to prevent competition. The Competition Act does not prevent business firms from having or gaining a large market share for their products or services. However, the abuse of dominant position is anti-competitive and is strictly prohibited by the law. Similarly, she said, misleading consumers through deceptive marketing also draws the provisions of the Competition Act. Ms. Hassan said that since its inception in 2007, CCP has engaged in active advocacy to create awareness of the competition law and encourage its voluntary compliance. “More than 60 active sessions of advocacy have been held so far while the Commission plans to engage in more knowledge-based advocacy events to educate the stakeholders and encourage them to comply with the law voluntarily.” Recognizing that there was a long history of collusive business practices in certain sectors, she emphasized that the CCP supports compliance-oriented approach, and was more interested in bringing out corrective behavior in the business community as CCP’s role is not to scare businesses but to discipline them. However, those in violation of the law need to be forthcoming and admit such violations in order to seek lenient treatment. She emphasized that leniency provisions are part of the law and play a pivotal role in breaking cartels. “Undertakings should feel encouraged to invoke this provision if they desire leniency.” She said that under the Competition Act, 2010, the penalties imposed by CCP were deposited in the Government exchequer and not to the CCP fund directly, thus the perception of a conflict of interest was misplaced. The CCP Chairperson informed the participants of the seminar that the Commission has launched a Voluntary Competition Compliance Code to encourage the voluntary compliance of the Competition Act, 2010. A presentation was given by CCP officials to the seminar participants about the Voluntary Competition Compliance Code that highlighted various aspects of the code and the benefits to be gained by business undertakings by adopting the code. The Code is aimed to ensure that undertakings achieve the overall purpose of competition law, which is to make markets competitive for the benefit of both undertakings and consumers. RCCI President while addressing the occasion lauded the role that CCP is playing to promote competition in the economy and suggested that the steps taken to raise awareness of the Competition Law should continue. At the end, questions and concerns were addressed by the Chairperson.
Enforcement of competition law is a must for creating a level playing field for all businesses and ensuring economic growth by removing entry barriers and curbing anti-competitive practices in the economy. This was stated by the Chairperson, Competition Commission of Pakistan (CCP), Rahat Kaunain Hassain, while addressing a seminar on Competition Law, held at the Rawalpindi Chamber of Commerce and Industry (RCCI). On this occasion, the President RCCI Ali Raza Saeed Shah, Member CCP Abdul Ghaffar, Director General CCP Ikram-ul-Haq Qureshi, and a large number of RCCI Members were present.
The CCP Chairperson said that the Competition Act, 2010 is a state of the art law that adequately protects consumers from exploitative pricing collusion or other forms of cartelization, which are designed to prevent competition. The Competition Act does not prevent business firms from having or gaining a large market share for their products or services. However, the abuse of dominant position is anti-competitive and is strictly prohibited by the law. Similarly, she said, misleading consumers through deceptive marketing also draws the provisions of the Competition Act.
Ms. Hassan said that since its inception in 2007, CCP has engaged in active advocacy to create awareness of the competition law and encourage its voluntary compliance. “More than 60 active sessions of advocacy have been held so far while the Commission plans to engage in more knowledge-based advocacy events to educate the stakeholders and encourage them to comply with the law voluntarily.”
Recognizing that there was a long history of collusive business practices in certain sectors, she emphasized that the CCP supports compliance-oriented approach, and was more interested in bringing out corrective behavior in the business community as CCP’s role is not to scare businesses but to discipline them. However, those in violation of the law need to be forthcoming and admit such violations in order to seek lenient treatment. She emphasized that leniency provisions are part of the law and play a pivotal role in breaking cartels. “Undertakings should feel encouraged to invoke this provision if they desire leniency.” She said that under the Competition Act, 2010, the penalties imposed by CCP were deposited in the Government exchequer and not to the CCP fund directly, thus the perception of a conflict of interest was misplaced.
The CCP Chairperson informed the participants of the seminar that the Commission has launched a Voluntary Competition Compliance Code to encourage the voluntary compliance of the Competition Act, 2010.
A presentation was given by CCP officials to the seminar participants about the Voluntary Competition Compliance Code that highlighted various aspects of the code and the benefits to be gained by business undertakings by adopting the code. The Code is aimed to ensure that undertakings achieve the overall purpose of competition law, which is to make markets competitive for the benefit of both undertakings and consumers.
RCCI President while addressing the occasion lauded the role that CCP is playing to promote competition in the economy and suggested that the steps taken to raise awareness of the Competition Law should continue.
At the end, questions and concerns were addressed by the Chairperson.
© CCP 2024, Competition Commission of Pakistan ©All rights reserved
