An assessment team of Federal Trade Commission (FTC) of the United States would visit Pakistan to explore possibility of providing technical assistance to the Competition Commission of Pakistan (CCP). In this regard, CCP Chairman Khalid Mirza has visited the US FTC to share Pakistan's experience with its US counterpart and gathered extensive know how on policy planning initiatives and other matters related to promoting competition.
The US FTC assistance would strengthen the Pakistani agency for protection of consumers for carrying out studies on scientific methods for moving against cartels. Sources told Business Recorder here on Thursday that the Pakistani competition agency has sought technical assistance from the US TFC, which is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy.
In this connection, a two-member US FTC team is expected to visit Pakistan in March 2010 for the competition impact assessment of the CCP. The FTC would discover avenues for providing technical assistance to the competition agency of Pakistan. The FTC team would further explore areas where possible US assistance could be provided to the CCP. The need assessment mission would visit the CCP office to witness the practical working under the existing organisational structure of the commission.
During visit of Mirza to the US, it has been found that both the competition agencies have similar laws. In case of US, companies promptly provide requisite information to the TFC as compared to Pakistan where people go to courts instead of submitting data to CCP for proving themselves clean. CCP Chairman studied the ways and means for conducting analysis, studies and working of the TFC for implementing best international practices in Pakistan.
The CCP Chairman shared Pakistani experience, sector studies and cases of cartelisation framed against powerful and influential groups and lobbies. The US TFC highly appreciated the performance of the CCP and methodology applied by the CCP to unearth cartels in leading sectors of the economy based on comprehensive data.
The US TFC admired that the Pakistani agency has investigated many leading sectors of the economy and showed results ultimately protecting the general consumers. The CCP Chairman also briefed the US TFC officials on the new Competition Ordinance during an internal seminar of the US agency. The seminar was specially organised by the TFC to have an update on the CCP's action against cartels.
The seminar focused on performance of Pakistani competition laws for detecting cartels in organised sectors. The officials of the US agency were surprised that the Pakistan has shown remarkable performance since enforcement of new competition law in key sectors of the economy.
While visiting different departments of the TFC, Pakistani official noted that FTC pursues vigorous and effective law enforcement; advances consumers' interests by sharing its expertise with federal and state legislatures and US and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.
The FTC enforcement work is done through administrative proceedings and in federal court actions. Congress has also given the FTC rule-making authority, which it has used in a variety of industries. Finally, the FTC advises policy makers through reports, testimony and speeches, and advisory opinions. All formal FTC actions are co-ordinated through the Office of the Secretary.
The CCP observed that the FTC's Bureau of Consumer Protection works for preventing fraud, deception, and unfair business practices in the marketplace. The Bureau enhances consumer confidence by enforcing federal laws that protect, empowers consumers with free information to help them exercise their rights, sources added. The Federal Trade Commission's Bureau of Competition champions the rights of American consumers by promoting and protecting free and vigorous competition.
The Bureau reviews mergers and acquisitions, and challenges those that would likely lead to higher prices, fewer choices, or less innovation; seeks out and challenges anti-competitive conduct in the marketplace, including monopolisation and agreements between competitors; promotes competition in industries where consumer impact is high, such as health care, real estate, oil & gas, technology, and consumer goods; provides information, and holds conferences and workshops, for consumers, businesses, and policy makers on competition issues and market analysis.