The Competition Commission of Pakistan (CCP) held hearings in Karachi on June 17th on the show cause notices issued to Dawood Corporation Pvt Limited (DCL) on it's acquisition of shares of Dawood Lawrencepur Limited and Central Insurance Company Limited.
DCL failed to supply the CCP with a pre-merger application as required under the Competition Ordinance 2007. A hearing was also held on June 16 in the matter of show cause notice issued to Pakistan Steel Mills Corporation (Pvt) Limited (PSM). The CCP had previously taken notice on its own of the arbitrary and discriminatory manner of distribution and sale of steel billets by PSM. This notice was based on articles published in the media during February 2009 in addition to a complaint submitted to the Commission shortly thereafter.
After conducting an in depth inquiry into the matter, it was alleged in the show cause notice that, PSM is, on its face, abusing its dominant position as it has refused to deal with purchasers in relation to low carbon steel billets and by doing so, excluded "other undertaking(s) from the production, distribution or sale of any good", in this case, downstream products made from steel billets. PSM made various arguments to the contrary upon which the bench hearing the matter required PSM to submit documentary evidence before the next date of hearing:
The CCP also met with the American Business Council (ABC) and the Management Association of Pakistan (MAP) in individual roundtable events hosted by the professional organisations. CCP Chairman, Mr Khalid Mirza, addressed both audiences and discussed the Commission's near and long-term goals in addition to the CCP's recently passed Orders.
Members extended their vigorous support to the outcomes of the Commission's objectives and were elated to learn that the CCP is presently considered by its global counterparts to be one of the most effective and cutting edge Competition Commissions in the world.