The Competition Commission of Pakistan (CCP) has issued show-cause notices to National Police Foundation and Tri-Star Cable TV Network for, prima facie, entering into an exclusive agreement prohibited under the Competition Act, 2010.
According to a press release issued on Wednesday, CCP received a formal complaint from Nayatel Limited and informal complaints from the residents of National Police Foundation (NPF), that a 10-year agreement that took place between NPF and Tri-Star Cable TV Network TCTN on 27 November 2008, granted exclusive right to TCTN in respect of multi-channel Cable TV and data transmission services in sector E-11(3/4) owned by NPF. This agreement, the complaints said, restricted consumers from getting service from other operators of choice in the relevant area.
An enquiry conducted by the Commission found the exclusivity clause in the agreement between NPF and TCTN to apparently have the object or effect of restricting or reducing competition within the relevant market which is a prima facie violation of section 4 of the Competition Act. In terms of the Enquiry Report this Agreement had and continues to have the effect of restricting competition in the concerned area by:
1. Creating barriers to entry by denying other service providers to provide their services in the area
2. Denying customers the right to choose from better of the services and;
3. Discouraging innovation by restricting the market to one operator and denying opportunity to others to provide a technologically superior product or service based on the recommendations of the enquiry report and in order to safeguard the business interest of the undertakings as well as of the consumers in accordance with law, show cause notices have been issued by Ikram Ul Haque Qureshi, Director General (Legal)/ Registrar of the Commission.
In the show cause notices the respondents have been given 14 days time to file their written reply and to avail the opportunity of being heard on March 15, before the Commission.-PR