ISLAMABAD
\nThe Islamabad High Court (IHC) has upheld the jurisdiction of the Competition Commission of Pakistan (CCP) to inquire into deceptive marketing and anti-competitive conduct in the telecom sector. The court dismissed the petitions filed by Pakistan\u2019s leading telecom operators, including Jazz, Telenor, Zong, Ufone, Warid, PTCL, and Wi-Tribe.
\nJustice Inaam Ameen Minhas, in a detailed 19-page judgment, ruled that the CCP lawfully exercised its powers under the Competition Act 2010 in issuing show-cause notices to telecom operators over misleading advertising and additional service charges imposed on prepaid customers.
\nThe court observed that the CCP\u2019s statutory mandate extends across all sectors of the economy, including telecommunications, and operates concurrently with the Pakistan Telecommunication Authority (PTA), said a release issued here on Saturday.
\nThe petitions challenged CCP\u2019s show-cause notices issued between 2013 and 2014 against cellular operators for allegedly levying hidden \u201cservice maintenance\u201d or \u201crecharge\u201d fees on prepaid cards, a practice that CCP deemed deceptive marketing under Section 10(2)(b) of the Act.
\nSeparately, PTCL and Wi-Tribe had also contested notices over the marketing of \u201cunlimited internet packages\u201d that were, in fact, subject to fair usage policies.
\nIn another petition (W.P. 2757\/2023), PTCL had sought to block an inquiry initiated by CCP on allegations of discriminatory pricing in fixed local loop (FLL) services.
\nRejecting the telecom firms\u2019 argument that the PTA held exclusive powers to regulate competition in the telecom sector, the IHC in para 22 of the judgment held, \u201cthe CCP possesses overarching jurisdiction, across all sectors of the economy, including telecommunications. Its functions are not limited to mere regulation but extend to the prevention and prohibition of anti-competitive behaviour, abuse of dominance, collusive arrangements, and deceptive marketing practices.\u201d
\nThe court ruled that both statutes \u2014 the Telecommunication (Re-organization) Act 1996 and the Competition Act 2010 operate in \u201cdistinct yet complementary domains.\u201d While PTA regulates technical and operational aspects, the CCP has the primary authority to address competition-related and deceptive marketing matters.
\nThe judge emphasized that even regulatory bodies like PTA fall within CCP\u2019s ambit, citing Section 2(1)(q) of the Act which defines \u201cundertaking\u201d to include any governmental or regulatory body.
\nThe court also dismissed the writ petitions on grounds of prematurity, noting that CCP\u2019s show-cause notices were procedural and not adverse orders. Justice Minhas observed that the petitioners had adequate statutory remedies before the Commission, its appellate bench, and the Competition Appellate Tribunal.
\n\u201cInterference at this initial stage would amount to obstructing a statutory body from performing its lawful functions and would jeopardize the intent of the legislature behind the Competition Act 2010,\u201d the judgment stated.
\nHolding that the CCP was within its powers to investigate deceptive and anti-competitive practices in the telecom sector, the IHC dismissed all seven connected petitions as \u201cnot maintainable.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The Islamabad High Court (IHC) has upheld the jurisdiction of the Competition Commission of Pakistan (CCP) to inquire into deceptive marketing and anti-competitive conduct in the telecom sector. The court dismissed the petitions filed by Pakistan\u2019s leading telecom operators, including Jazz, Telenor, Zong, Ufone, Warid, PTCL, and Wi-Tribe. Justice Inaam Ameen Minhas, in a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-512141","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n