The Competition Commission of Pakistan (CCP) is legally empowered to take action against government departments, autonomous bodies and independent organisations involved in abuse of dominant market position, cartelization, collusive behaviour and deceptive marketing practices.
Sources told Business Recorder here on Tuesday that the definition of "undertaking" under the CCP Ordinance 2007 means any natural or legal person, governmental body including a regulatory authority, corporate body, 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 undertaking.
This definition covers the national flag carrier as the airline is also an undertaking, which is covered under the Ordinance 2007. A two-member bench of the CCP had imposed penalty on the airline for abusing its dominant market position by excessively increasing Hajj fares in 2008. Recently, Defence Minister, Chaudhry Ahmed Mukhtar has said that the CCP has no legal authority to interfere in the affairs of the airline.
The PIA is a state run organisation where CCP is only empowered to deal with the issue of cartelisation. However, the CCP cannot interfere into other matters of the national flag carrier. When asked about the legal status, senior officials of the CCP opined that the Competition Ordinance 2007 has ample powers to investigate government departments and state run organisations.
The provisions of the CCP are clear on this issue. Any government department involved in violation of the Competition Ordinance 2007 could be investigated by the CCP under the relevant provisions, sources added. As per Section 3 of the Competition Ordinance, 2007, no person shall abuse dominant position. An abuse of dominant position shall be deemed to have been brought about, maintained or continued if it consists of practices which prevent restrict, reduce or distort competition in the relevant market, it added.