In a landmark decision, the Lahore High Court, led by Justice Jawad
Hassan, has upheld the validity of show-cause notices issued by the Competition Commission of
Pakistan (CCP) in the poultry matter concerning price fixing of day-old chicks. The decision
reaffirms CCP’s authority to pursue investigations and act against monopolistic practices, ensuring
a competitive market environment. Justice Jawad Hassan emphasized that a show-cause notice issued on the basis of an inquiry report
cannot be prematurely contested in the High Court. Referring to the legal doctrine of "ripeness", he
ruled that cases should proceed through CCP hearings, allowing appeals only after the CCP's final
decision. The judgment clarifies the CCP’s jurisdiction, safeguarding its autonomy to enforce
competition laws without undue interference. The court noted that obstructing CCP functions could hinder the Commission’s role in preventing
anti-competitive practices and promoting fair business competition. Justice Hassan underscored
the judiciary’s duty to support regulatory bodies like the CCP in upholding competitive integrity
across industries. The petitioner’s counsel argued that there were procedural lapses in the enquiry report, therefore
show cause notices should not have been issued. However, the CCP’s legal team, comprising
Barrister Asad Ullah Chatha, CCPs legal advisors, Barrister Ambreen Abbasi, Hafiz Muhammad
Naeem and Hassan Raza, challenged the maintainability of the petition, a position the court
ultimately upheld. The CCP investigated suspected collusion and price-fixing by eight hatcheries for day-old broiler
chicks from 2019 to June 2021. Forensic analysis revealed that prices were coordinated via SMS
and WhatsApp by an official of a member firm. The Pakistan Poultry Association (PPA) was also
found in possible violation of Section 4 of the Competition Act for involvement in pricing
discussions. However, the poultry companies M/s Sadiq Poultry and M/s Islamabad Feeds
challenged the show-cause notices and has secured a stay order, temporarily halting CCP's
proceedings. This comprehensive 21-page judgment now stands as a precedent, strengthening the
CCP’s authority to enforce anti-trust laws and foster fair competition within Pakistan’s economic
landscape. CCP Chairman Dr. Kabir Sidhu has strategically strengthened the CCP’s legal team to enhance its
capability in dealing complex competition cases and regulatory challenges. This overhaul has
improved efficiency, and prioritized resolution of legal backlogs. As a result, over 40 cases have
been resolved by Competition Appellate Tribunal (CAT), High Courts and Supreme Court of
Pakistan. The resolution of cases resulted in recovery of Rs100 million from businesses involved
in anti-competitive practices.
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