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The Competition Commission of Pakistan (CCP) is legally empowered to impose a financial penalty of up to Rs 75 million or an amount not exceeding 10 percent of the annual turnover of the company involved in violation of the Competition Act, 2010.
According to the CCP's 'The Guidance on Competition Compliance,' the section 38 of the Competition Act empowers the Commission to impose a financial penalty of up to Rs 75 million or an amount not exceeding 10 percent of the annual turnover of the undertaking(s) found to be in violation of the Act. For non-compliance, including wilful abuse, interference, or obstruction of the Commission's orders, notices, or requisitions, the Commission can impose a fine of up to Rs 1 million. In the case of continued violation of an order of the Commission, the CCP can impose an additional fine of an amount of up to Rs 1 million per day till such time the violation end. A failure to comply with the Commission's order or directions constitutes a criminal offence punishable with imprisonment for up to one year or with a fine of up to Rs 25 million, or both.
Pursuant to section 37 of the Act, the Commission is empowered to initiate enquiries either on its own; or upon a reference made to it by the federal government; or upon receipt of a complaint by an undertaking. The process of filing a complaint by any business or individual is given in Regulations of the Commission's General Enforcement Regulations.
Where an enquiry finds prima facie violation, the Commission may issue a show cause notice to the concerned undertaking(s) to provide an opportunity for hearing before adjudicating upon the issue and passing an order. In case an individual has adequate information about a cartel or anticompetitive practice, he or she may report such activities to the Commission, the CCP said.
The Commission rewards informants an amount ranging from a minimum of Rs 200,000 to Rs 2,000,000. The reward shall be paid if the information provided by the informant is accurate, verifiable, and useful in the Commission's anti-cartel enforcement. The Commission keeps the identity of the informant confidential, Guidance on Competition Compliance added.

Copyright Business Recorder, 2016

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