CCP appellate bench hears Wateen-DHA Case, grants 10 days to parties to submit reply.

Islamabad,  31-12-2010

An appellate bench of the Competition Commission of Pakistan (CCP) comprising of Chairperson, Ms. Rahat Kaunain Hassan and Member (M&A), Ms. Vaddiya Khalil, held a hearing in respect of the proceedings initiated against Wateen Telecom (Pvt.) Limited and Defence Housing Authority (DHA). Upon request and being urged by Wateen’s counsel, the bench granted 10 days for submission of reply to the CCP Show Cause Notice and for furnishing documents required by the bench. CCP had issued Show Cause Notices to Wateen and DHA on 26 November 2010 for violating Section 4 of the Competition Act, 2010 by entering into an exclusive agreement for provision of telecommunication and media services for one of the phases of DHA. It was pointed out during the hearing that Wateen had failed to submit documents that it was required by the bench in the previous hearing. On behalf of Wateen, legal concerns were raised regarding the jurisdiction of CCP and the retrospective effect of the competition law. Wateen’s rationale for agreeing to an exclusive arrangement for a period of 30 years is the huge investment made by Wateen in respect of the project. On the other hand, DHA in its submissions highlighted that Wateen has not been performing its obligations under the exclusive agreement and that DHA has been receiving complaints from its residents about the inefficiency of Wateen and would be keen that this exclusivity be withdrawn and is willing to amend the agreement. The next date of hearing in respect of the matter has been set for 13 January, 2011. Parties have been required to furnish projections and explain the rationale for granting exclusivity for a period of 30 years.