The Competition Commission of Pakistan (CCP) is an independent quasi-regulatory, quasi-

judicial body that helps ensure healthy competition between companies for the benefit of the
economy.

The Commission prohibits abuse of a dominant position in the market, certain types of anti-
competitive agreements, and deceptive market practices. It also reviews mergers of undertakings
that could result in a significant lessening of competition. Combined with its advocacy efforts,
the Commission seeks to promote voluntary compliance and develop a ‘competition culture’ in
the economy.

The Competition Commission of Pakistan (CCP) was established on 2 October 2007 under the
Competition Ordinance, 2007, which was repromulgated in November 2009. Major aim of this
Ordinance was to provide for a legal framework to create a business environment based on
healthy competition for improving economic efficiency, developing competitiveness and
protecting consumers from anti-competitive practices.

Prior to the Competition Ordinance, 2007, Pakistan had an anti-monopoly law namely
‘Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance’ (MRTPO)
1970. The Monopoly Control Authority (MCA) was the organization to administer this Law. In
the fast changing global and national economic environment, the MRTPO, 1970 was inadequate
to address competition issues effectively. This was because:

i) the 1970’s law was out of date for a modernizing and rapidly transforming market economy;

ii) due to several limitations in the law, the MCA was not able to meet the expectations of
businesses and the consumers at large;

iii) the first generation reforms that liberalized the economy and encouraged the private sector
required a competition policy framework that could promote and protect competition and
innovation.

 The Government of Pakistan thus launched a programme to develop Competition Policy as a

key “second generation reform” initiative. Towards this end, the Ministry of Finance and the
MCA worked with the World Bank and the Department for International Development (DFID),
UK. As a result of these efforts, Competition Ordinance, 2007 replaced the MRTPO.After
getting approve, Competition Ordinance 2007 finally transformed into Competition Act 2010.

The Competition Act, 2010 considers the current economic realities as well as corrects the
deficiencies of the MRTPO related to definitional aspects, coverage, penalties, and other
procedural matters.

In line with modern competition regimes, the law adopts a ‘carrot and stick” approach - the law
provides for higher fines combined with imprisonment for non-compliance; on the other hand,
the carrot is sweetened with sophisticated leniency provisions that may eventually lead to no
fines and imprisonment, subject to certain conditions. To maintain high standard of evidence for
unearthing secret cartels, the Competition Commission has legal powers to conduct searches and
inspections’.

DEPARTMENTS

:: Advocacy & IT
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Advocacy:
Competition advocacy is about promotion of competition though means other than law
enforcement. Advocacy efforts are necessary to maximize voluntary compliance with competition
law. While CCP continues efforts to increase compliance of the competition law through
enforcement measures, it is also trying to sensitize key stakeholders regarding the need for and
importance of a fair competition milieu in the country’s economy. This sensitization of the
stakeholders, including the government, business, industry and public, is being carried out
through a well-articulated advocacy programme designed by the Commission’s Advocacy
Department. Section 29 of the Competition Act, 2010 too requires the Commission to engage in
advocacy through various means in order to create an awareness of competition issues and to
promote a culture of competition in the country. In pursuance of this objective set out in the
Competition Act, the Commission has very actively engaged itself in advocacy. Extensive and
focused advocacy efforts include numerous seminars, roundtables, media appearances, active
sessions of the Competition Consultative Group (comprising leading business executives, sector
regulators, academics etc), and bilateral meetings with sector regulators. A multi-pronged
advocacy strategy has been adopted by the Commission that focuses on achieving the following
objectives:

 to create awareness and understanding about the Competition Act;

 to advocate and defend the need and importance of the competition law for the economy
amid strong opposition to it from certain business interests affected by the
implementation of the law;
 to project the actions taken by the Commission. Likewise, the long term goals have been
set to increase the voluntary compliance, take awareness and education of the
competition law to new levels and to promote competition in the developing countries by
holding international activities.

For any Queries/Feedback, please email us at advocacy@cc.gov.pk

Information Technology:
IT is responsible for computerization and automation of all matters relating to information
technology.
 Cartels & Trade Abuses
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Two departments i.e. 1. Monopolies & Trading Abuses  2. Cartels & Investigation were merged
to form the department of Cartels and Trade Abuses. The department conducts enquiries &
investigations for possible contraventions of Section 3 & Section 4 including inter alia :-

1. Abusive practices of dominant undertakings including but not limited to :-

 limiting production, sales and unreasonable increases in price or other unfair trading
conditions;
 price discriminations, predatory pricing, tie-ins, boycotting, refusal to deal

2. Prohibited Agreements: No undertaking or association of undertakings shall enter into any

agreement or, in the case of an association of undertakings, shall make a decision in respect of the
production, supply, distribution, acquisition or control of goods or the provision of services which
have the object or effect of preventing, restricting or reducing or distorting competition within
the relevant market unless exempted under section 5 of this Act.

In future the department intends to:-

1. Focus on relatively unexplored areas of public procurement, bid rigging, collusive

tendering and other similar section 4 violations.
2. be more vigilant in matters regarding the conduct of dominant undertakings for potential
violations of Section 3 and on the conduct of trade associations for suspected
cartelization
3. Focus on capacity building of the department, especially in the areas of detection of
cartels, digital evidence gathering, quantitative analysis and other investigation skills.
4. build up a coordination and information sharing mechanism with other competition/anti
trust organizations

:: Competition Policy & Research

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Globally, competition agencies are striving to become modern public institutions that deliver
services to their constituencies in an effective and efficient manner. In the challenging
environment in which the Competition Commission of Pakistan is operating, the Commission
needs to formalize a process by which it can continuously assess and improve its enforcement,
advocacy and operational practices as new opportunities and challenges come to the forefront. In
light of this, the Policy Planning, and Research Department of the Commission is working to
ensure high-quality decision making by the senior management of the Commission, seeking to
develop an articulate long-term strategy for the Commission along with a plausible
implementation plan and build tools to measure performance of the Commission’s activities.
Such effective policy planning will require both internal research and international interaction.
The focus of the Policy Planning, and Research  Department is to:

 Set up a system to regularly assess the effectiveness of the implementation of the

competition law and the Commission;
 Position the Commission as an institution through which relevant policy flows to all
stakeholders though advocacy/outreach activities government to create and reinforce the
culture of compliance rather than on forceful law enforcement;
 Develop clear strategies, guidelines and/or operation manual for daily works such as
market study and case analysis;
 Ensure access to information and tools such as market studies, best practices, networking
with other competition agencies, and
 Keep abreast of global development on competition policy as well as contribute to policy
formulation at the international level.

Legal & Corporate Affairs

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Legal

The Legal Department operates under the supervision of Chairperson. Its functions and
responsibilities include managing the legal affairs of the Competition Commission; providing,
inter alia, legal advice and assistance to operational departments and, undertakings on matters/
and issues pertaining to the Competition Act 2010 (the ‘Act’);, and acting as a liaison with the
Federal Government, regulatory authorities and other departments of the government. The Legal
Department also represents the Competition Commission in court cases and drafts court pleadings
on behalf of the Competition Commission. Exemptions filed by undertakings under Section 5 of
the Act, are processed by the Legal Department and the necessary exemption certificates are
issued after obtaining approval of the concerned Member. The Competition Commission is
empowered under the Act to prescribe by-laws and consequently, the Legal Department also
plays an active role in the drafting and vetting of such Rules and Regulation and any amendments
in them, if and when required. Currently, it is working on formulating Guidelines and Regulations
on various aspects of Competition Law, to keep abreast with new developments and findings in
Competition Law in more mature jurisdictions; the Legal Department is constantly engaged in
research and is also working to further the understanding and interpretation of the provisions of
the Act.

Corporate Affairs Division (CAD)

Corporate Affairs Division (CAD) is responsible for provision of efficient support services to the
entire Commission including matters relating to finance and accounts; development of human
resources, appropriate recruitment, induction, and training of staff; administrative matters relating
to the security of the Commission’s property, upkeep of the office premises and related
managerial issues.
 Basically focused on operational support, the CAD is divided into the following units:

 Administration Wing
 Human Resource Wing  
 Accounts Wing and
 Finance Wing

Because of the multifarious duties assigned to this department, the services rendered by it have a
significant impact on the working of the Commission.

Mergers, Acquisitions & International Affairs

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Merger and Acquisition Cases
 
1. INTRODUCTION
 
The Merger & Acquisition Department operates under the supervision of Member (Merger &
Acquisition). Its functions and responsibilities include detection of Merger and acquisition cases
from newspapers, websites of all stock exchanges, SECP etc and overview of any
merger/acquisition of shares or assets /joint venture etc. under Section 11 of the Competition Act,
2010 (the Act). It also operates “Acquisitions & Mergers Facilitation Office” (AMFO), the
purpose of which is to facilitate the undertakings which are contemplating merger or acquisition
(as defined in the Competition Act 2010) and want to get informal and non binding view of the
Commission. The Merger & Acquisition Department has dealt with a large number of cases of
mergers, acquisitions and joint venture agreements (Link button). The procedure adopted by this
Department for examining the application and issuance of NOC is very transparent and dealt with
expeditiously by experts working in this Department. In spite of a time frame of 30 days for the
first phase review, the cases are usually finalized and NOC issued within few days except the
cases where some additional information is required. During processing of cases utmost effort is
made that applicant undertakings are not bothered to visit Commission’s office. The additional
information required is collected telephonically instead of making correspondence, except in rare
cases.
 
2. LAW
 
Section 11(1) of the Act envisages a prohibition and defines the offence, i.e. any merger which
substantially lessens competition by creating or strengthening dominant position is barred under
law. Section 11(2) of the Act, a non obsante mandatory provision requires the undertakings
intending to merge or making transactions regarding acquisition of assets/shares which meet the
thresholds provided in Regulation 4 of the Competition (Merger Control) Regulations, 2007 to
submit application for clearance by the Commission.
 
3. PROCEDURE
 
The undertakings meeting the thresholds are required to submit application in the prescribed form
available in the Schedule to the Competition (Merger Control) Regulations, 2007 (Link button)
along with the fee prescribed in Regulation 5(6) of the Regulations. On receipt of the pre-merger
application, complete in all respects, the Commission examines and scrutinizes it in the light of
the provisions of the Act as well as the Regulations.
 
Phase I Review (30 days).
 
The case is examined in detail and, if observed, that there is no lessening of competition by
creating or strengthening a dominant position in the relevant market, a No Objection is granted to
the applicant undertaking. If, otherwise, the case is taken into 2nd phase review for further
examination in depth. The Commission is supposed to finalize the Phase I review within 30 days,
but usually it examines and finalizes the merger/acquisition case expeditiously within 2-3 days, if
there is no discrepancy or requirement of further documents/details for review. Failure to make a
determination within the prescribed period of thirty days of the first phase review shall mean that
the Commission has no objection to the intended merger.
 
Phase II Review (90 days).
 
The Commission after examining the case in Phase-I Review, if determines that the intended
merger lessens competition by creating or strengthening a dominant position, it proceeds, further
to examine the case in detail after acquiring further details/documents. After the examination the
Commission may;

• prohibit consummation of the intended merger; or

• approve the intended merger subject to conditions; or

• approve the intended merger on the condition that the concerned undertaking enter into
contracts specified by the Commission; or

• give clearance and authorize the intended merger if the intended merger under review does not
lessen competition by creating or strengthening dominant position. For the purpose of second
phase review, the Commission calls for further detailed information to enable it to make the
necessary determination, within ninety days of the receipt of requisite information. The
Commission reviews the merger to assess whether it substantially lessens competition by creating
or strengthening a dominant position in the relevant market and pass its order under section 31 of
the Act. Failure to render a decision within ninety days shall be deemed to mean that the
Commission has no objection to the intended merger.
Consummation of merger without complying with the provisions of sub-section (1) to sub-section
(4) would attract the provision of section 38 for imposition of penalty.
 
International Affairs
The Department is actively involved in various working groups of the International Competition
Network (ICN), specifically in the Working Groups on Cartels and Agency Effectiveness. The
department also contributes to the workings of the Organisation for Economic Co-operation and
Development (OECD) and United Nations Conference on Trade and Development (UNCTAD).
 
Comments and queries may be sent to:
Merger & Acquisition and International Affairs Department,
Competition Commission of Pakistan
4-C, Diplomatic Enclave (Shams Gate),
G-5, Islamabad – 44000
Dr. Joseph Wilson (jwilson@cc.gov.pk)
The Office of International Affairs (oia@cc.gov.pk)

:: OFT & Bugetary Affairs

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Office of Fair Tarde

The Commission has established the Office of Fair Trade (OFT) in 2008 mainly responsible for
the protection of consumers against deceptive marketing practices mentioned under Section 10 of
the Act. The OFT has been set up to further the Competition Commission’s objective of creating
a business environment based on healthy competition and protecting consumers from anti
competitive practices. OFT enjoys all powers under the Act to enforce the provisions of Act in
the deceptive marketing practices cases.
 Acquisitions and Mergers Facilitation Office
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The Competition Commission of Pakistan (Commission / CCP) aims to provide guidance and
facilitation to undertakings* in complying with the Competition Act 2010. In this spirit the
Commission has taken the initiative of establishing the “Acquisitions & Mergers Facilitation
Office”. * "Undertaking" means any natural or legal person, governmental body including a
regulatory authority, body corporate, partnership, association; trust or other entity in any way
engaged, directly or indirectly, in the production, supply, distribution of goods or provision or
control of services and shall include an association of undertakings.(Section 2(q) Competition Act
2010).

 
OFFICE BEARERS:
 
The office comprises of the following:

i.  Mr.Tariq Bakhtawar (Director General Mergers & Acquisitions)

ii.  Mr. Mubashar Jamal (Joint Director Mergers & Acquisitions)

iii. Ms. Nadia Nabi (Joint Director Investigation).

 
PURPOSE:
 
The purpose of this office is

• to facilitate those parties which are contemplating merger or acquisition (as defined in the
Competition Act 2010) and want to get informal and non binding view of the Commission.
AMFO shall provide;

• assistance in applying for merger clearance (filling of application forms and filing of
documentation)

• information about the proposed acquisition or merger by approaching the Commission direct
and not through third parties (such as lawyers or outside consultants)

• this service is also available for those law firms, consultants and third parties who want to
obtain the commission's informal view about any specific matter in which they are advising their
clients.

 
OBJECTIVES:
 
This office has been set up for the assistance of undertakings for submission of pre-merger
applications. The applicant undertaking/s shall be provided help with the understanding and filing
of the pre-merger applications and also provided an overview of the substantive provisions of the
Competition Act, 2010 as well as Competition (Merger Control) Regulations, 2007. Following
are the main objectives of the creation of the office:

• to facilitate the parties involved in the transaction, in submission of pre-merger applications.

• to provide available pre-emptive identification of the key and potential competitive concerns
that may arise due to the proposed transaction. The parties, after they have approached the
‘AMFO' will be informed in advance and through an informal mechanism to ensure that all
competition concerns are addressed.

• To encourage parties who are proposing an acquisition or merger to come direct to the
Commission, thus preventing / saving the parties from the lengthy legal procedures and legal
advisory fees. The aim is to reduce time and cost of compliance of acquiring / merging parties.

• To provide a confidential service whereby complex transactions can come to CCP for a
preview. There can be a pre-emptive identification of the key and potential competition concerns,
by provision of suggestions / conditions for approval of merger at our end which are
implementable and commercially viable to the parties. Through this process merger remedies can
also be indicated and will also be already accepted by the parties involved in transaction. This
approach will provide a win-win situation for all the concerned parties, involved in the
acquisition/merger transactions, and the Commission.
 
STRUCTURE AND FEES:
 
• The issues referred to AMFO would be examined by the officers comprising it, on the basis of
facts made available to them and the relevant law. They may call for further information from the
concerned parties for the proper examination of the case.

• The reply of the Commission would be of an advisory nature only and it should not be treated as
a binding decision of the Commission in any way.

• The reply to the reference shall be issued within the minimum possible time, but not later than
one week of the receipt of the complete information.

• Since this is an advisory facilitation service, the fee would be Rs. 100,000/- per case.

A direct telephone line has been dedicated for all the calls coming through to the AMFO to
ensure easy access to advice seekers. The calls shall be received by Ms. Nadia Nabi (Joint
Director, Investigations). The dedicated direct line for this purpose is 051-9247538.
 
 
::

Office of Fair Trade

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The Office of Fair Trading or OFT is one of the major initiatives of the Competition Commission
of Pakistan (CCP) to redress deceptive marketing practices and enhance the link between the
Commission and the consumer. Establishment of OFT facilitates in completing the picture of the
competition agency in Pakistan. The purpose of setting up of OFT is to create a business
environment based on healthy competition by protecting consumers from deceptive marketing
practices. OFT has a mandate to oversee and act as a watch dog for Misleading and Deceptive
Marketing Practices under Section 10 of the Competition Act 2010. The objectives of OFT are;

To build a vibrant, fair and competitive market place for consumer confidence.

To encourage and ensure disclosure of sufficient information to enable informed consumer

choice.

Reach out to consumers and general public with the aim of identifying and providing solutions to
the potential issues.

Ensure fair dealing in business and to handle individual/group grievances on account of deceptive
marketing practices.

OFT is currently being supervised by Member (Office of Fair Trading (OFT) and Budgetary
Affairs), it is manned by the officers drawn from the Legal department. However, it is envisioned
that OFT will eventually be headed by a Director General with a team of such number of officers
as deemed appropriate by CCP from time to time.

It needs to be appreciated that unlike other jurisdictions where OFT operates and functions as an
independent Competition Agency, the establishment of an Office of Fair Trading within the CCP
is focused on consumer protection essentially within the limited scope of Section 10 of the Act
2010.