Responding to a question, on steps taken by the CCP for protection of consumers, the Finance Minister informed the upper house that the CCP has ensured free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behaviour.
The CCP in discharge of its statutory role under Section 29 has issued 11 Policy Notes so far regarding any policy or law which is in conflict with the Competition Act. The CCP has also launched 'Reward Payment to Informants' scheme. An advocacy booklet under the title 'Information Booklet on Protection from Anti-competitive Practices' has been printed and disseminated. The CCP has developed research capacity and published research publications to study the state of competition in the economy and act accordingly.
Hafeez said the CCP has established an online complaint cell for facilitation of general public. The CCP has built a coalition of support by reaching out aggressively to media, consumer associations, professional bodies, chambers of commerce, sectoral business associations and think-tanks, etc.
Referring to the results and achievements of the CCP, the Finance Minister said in his written reply that the CCP has achieved the results due to its enforcement actions in sectors directly impacting general public. The commission has also created awareness through advocacy and built a culture of compliance for rectifying anti-competitive behaviour and ensuring positive and progressive image of Pakistan in the global competition regimes.
The Finance Minister said that the CCP actions have created and are creating deterrence for businesses. As part of due process, various actions taken and the penalty imposed have been challenged before the courts and are pending adjudication. However, it can not be denied that these actions have created deterrence for both public as well as private sector undertakings, abusing their power and have indeed worked towards protecting consumers from anti-competitive practices - such as falling victim to collusive behavior, deceptive marketing or abuse of dominant position.
Dr Abdul Hafeez Sheikh has said that CCP is striving to create awareness for a culture of compliance; to rectify anti-competitive behavior. In this process, the CCP has achieved various successes through compliance and commitment. In certain cases, eg, the jute mill cartel, the penalty of Rs 23 million has even been recovered and deposited in the public exchequer.
The CCP became the first regulatory authority from South Asia, which has been short-listed by the Global Competition Review (GCR) for the Enforcement Award in the category 'Agency of the Year - Asia-Pacific, Middle East and Africa' for 2012. This is the second time that these awards are taking place and it is indeed commendable for the CCP to be considered, he maintained.
During 2011-12, CCP issued 10 orders. Of these orders, two orders related to the Prohibited Agreements (Cartelization) three related to the exemption of prohibited agreements, one about leniency, and three related to deceptive marketing practices whereas one for merger approval. The CCP has issued three Policy Notes, ie, one to the Securities and Exchange Commission of Pakistan to assist in developing new framework for cost accounting information sharing, second to the local authorities for the reform of price determination practice for fresh milk and third to the government of Punjab regarding complete ban on the establishment of new sugar mills and on the expansion in the capacity of existing sugar mills. The CCP issued 110 Show Cause Notices in total to the companies, trade associations as well as individuals for violation of the Competition Act. The commission has conducted 28 hearings in various matters including the abuse of dominant position, prohibited agreements (cartelisation), deceptive marketing practices and approval of mergers. The commission conducted nine inquiries covering a wide range of commercial/economic activity, wherein violations of the Act have been pointed out.
The CCP conducted four search and inspections to investigate prevalence of harmful collusive practices and to collect the evidence. During this period, 51 mergers and acquisitions were cleared and 123 exemption certificates were granted.
In 2010-11, 19 orders were issued by the CCP, of which eight related to the prohibited agreements (Cartelization), four related to abuse of dominant position, two were about deceptive marketing practices, two regarding the clearance of mergers and two related to the non-compliance of the orders of CCP. Two Policy Notes were issued ie one to the Civil Aviation Authority on entry fee at the Benazir Bhutto Airport, Islamabad and second to the Karachi Stock Exchange regarding their listing regulations.
During the period, 52 show cause notices were issued to the companies, trade associations as well as individuals for violation of the Competition Act. In total CCP has conducted 23 hearings in various matters including the abuse of dominant position, prohibited agreements (cartelisation), deceptive marketing practices and approval of mergers.
The CCP conducted 6 inquiries covering a wide range of commercial/economic activities; wherein violations of the Act have been pointed out. The commission conducted three search & inspections to investigate prevalence of harmful collusive practices and to collect the evidence. The commission has cleared 85 Mergers and Acquisitions and 56 exemption certificates in respect of prohibited agreements were granted, the Finance Minister added.