KARACHI: The Competition Commission of Pakistan (CCP) is an independent quasi-regulatory, quasi-judicial body that helps ensure healthy competition between companies for the benefit of the economy.
It was established on October 2 ,2007, under the Competition Ordinance, 2007. With competition and consumer protection jurisdiction in broad sectors of the economy, the commission deals with issues that touch the economic life of every Pakistani.
The ordinance sets out the principles and norms of sound competitive behaviour as well as the manner in which these norms are to be enforced.
The major aim of the ordinance is to provide for a legal framework to create a business environment based on healthy competition for improving economic efficiency, developing competitiveness and protecting consumers from anti-competitive practices.
The Commission prohibits abuse of a dominant position in the market, certain types of anti-competitive agreements, and deceptive market practices. It also reviews mergers of undertakings that could result in a significant lessening of competition.
Combined with its advocacy efforts, the commission seeks to promote voluntary compliance and develop a ‘competition culture’ in the economy.
Prior to the Competition Ordinance, 2007, Pakistan had an anti-monopoly law, namely ‘Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance’ (MRTPO) of 1970.
The Monopoly Control Authority (MCA) was the organisation to administer this law.
In the fast changing global economy, the MRTPO of 1970 was inadequate to address competition issues effectively.