The effective enforcement of the Competition Law is a must for ensuring consumer welfare as well as creating an enabling environment for business and industrial growth as it encourages enterprise and efficiency while discouraging anti-competitive practices, said Dr Joseph Wilson, Chairman, Competition Commission of Pakistan (CCP) while addressing the business community of Sialkot today.
An advocacy session was organized by the Sialkot Chamber of Commerce & Industry (LCCI), which was attended by Dr Sarfraz Bashir, President SCCI, Dr Shehzad Ansar, CCP Member Advocacy, Executive Committee and General Body members of SCCI in large number. Dr Wilson briefed the participants in the meeting on key provisions of the Competition Act, 2010, and said the Competition rules and regulations are in line with the modern Competition Laws. While elaborating the substantive provision of the Law, he said the Law provides for protection from economic ills such as cartelization, abuse of dominance, and deceptive marketing that are equally bad for consumer as well as business and industry. By citing various cases, he informed the participants that CCP had taken notice of anti-competitive activities in almost all economic sectors and is vigilant in curbing activities that are harmful to the interests of businesses and consumers.
The Chairman said that the Commission has the powers to grant individual or block exemptions on grounds of efficiency or economic merit which did not exist in the provisions Competition Law of Pakistan. Similarly, CCP has recently issued Reward Payment Regulations for encouraging whistleblowers to contact the Commission for sharing information about anti-competitive practices. Moreover, the powers to carry out search and inspection help the Commission to investigate the violations in an effective manner.
The Chairman informed the participants that CCP recently won the World Bank's 2013 Competition Advocacy Contest in the category of "Successfully promoting pro-competition market reforms, opening of markets, and infusion of competition principles in other sectoral policies" for conducting advocacy to increase competition in the crucial segment of Pakistan's air transportation market--the route between Pakistan and Mecca and its recommendations were implemented by the Civil Aviation Authority, resulting in two new airlines entering the market and a decrease in the cost of air travel for consumers. CCP had raised its concerns by issuing a Policy Note to the Government of Pakistan in 2010 recommending that the bilateral Air Services Agreement of 1972 between Pakistan and Saudi Arabia be amended to address competition concerns. The Policy Note had also recommended to the Government that the agreement be amended to allow multiple airlines of both countries to operate direct scheduled services and hajj services between the two countries; abolish any market division, quotas and payment of royalties; and allow market forces to determine ticket prices without interference from either country's aviation authority or airlines.
Dr Shehzad Ansar, CCP Member while briefing the participants in the meeting on the role and performance of the Office of Fair Trade (OFT), said the purpose of OFT is to enforce Section 10 of the Competition Act that deals with deceptive marketing practices. "So far, OFT has achieved more than ninety percent (90%) compliance by companies with the relevant rules and provisions of Competition Law," he informed.
Addressing the advocacy session, Dr Sarfraz Bashir, President SCCI, appreciated CCP's efforts to promote a healthy competition in the economy. He gave a detailed account of SCCI's contribution towards the economic development of the country. He thanked CCP for its forthcoming policy towards the business community and assured SCCI's full support in implementation of the Competition Law.-PR
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