Coercive actions: Competition regulator urged to return PBA documents

CPNE, APNS deplore the ‘cat-and-mouse game played by CCP’

KARACHI: Council of Pakistan Newspaper Editors (CPNE) President Mujeebur Rehman Shami and All Pakistan Newspapers Society (APNS) President Hameed Haroon have deplored the coercive actions initiated by the Competition Commission of Pakistan (CCP) against the Pakistan Broadcasters Association (PBA).

In a statement issued on Thursday, they strongly questioned whether CCP’s coercive actions constitute ‘reasonable’ measures against PBA. They urged CCP to immediately reverse the ‘arbitrary’ actions taken by it against a body that is “a legitimate functioning part of a free and fair press” under article 19 of the Constitution.

“It is not the CCP investigating competitive practices that we take virulent objection to. What we object to are the arbitrary and unreasonable actions that accompanied their covert investigation against the apex broadcasters body, unfortunately on the very evening that the 21st Constitutional Amendment was being voted upon in Parliament. Surely this is no mere coincidence.”

“By all means the press is open to a CCP investigation of all unfair trade practices, if any. We uphold this facet of CCP’s function. But the meaningless and self-serving press release by CCP after its action mentions two frivolous charges; the first, that a centralised clearance system has been operating for the financial recovery of media dues against defaulting advertisers, including government – a system that exists in over one hundred countries of the world, and indeed has existed in Pakistan well before 1947.”



“The second charge is equally absurd, where PBA is accused of fixing rates of commissions to advertising agencies at 15% (although obviously not the quantum of advertising commissions themselves) – a standard practice that is carried out in almost all the countries of the world, and is far older than the creation of Pakistan. Does CCP really mean to imply, that all regulatory agencies in the world who have accepted these practices as not being inconsistent with competitiveness, are totally negligent in the performance of their duties?”

“Clearly the CCP has got it deeply wrong, and particularly when they accompany this with the draconian actions of arriving virtually unannounced to impound the entire legal record of the PBA. The bona fides of this cat-and-mouse action are highly questionable. The CCP could have asked for the required information which the apex body of the broadcasters would have provided willingly. And never has the PBA ever refused to provide the information, which has never been asked for.”

The CCP press release states that section 4 of the Competition Act “prohibits decisions by an association of undertakings that may prevent, restrict, or reduce competition in the relevant market.” We ask: “Has CCP ever considered the rate centralising and rate fixing taking place by the Press Information Department in the federal information ministry in this context? Surely there appears to be major legal asymmetry here.”

“Clearly the need of the hour is for immediate steps to be taken by CCP if they are not to completely lose credibility in the eyes of the nation. Firstly, all seized documents must be returned without any further delay so as to allow PBA to perform its day to day functions with respect to the press. Secondly, a future procedure to deal with cooperating media bodies that exist to further the provisions of article 19 of the Constitution, should replace the existing cat-and-mouse game.”

“Let the investigation of the CCP continue without prejudice. We welcome it. But let them learn to work within the parameters of what is reasonable in law and what is sustainable in natural justice. Otherwise, we in the media … when confronted by unreasonable decisions … might begin to believe that something other than the course of justice is being served.”

Published in The Express Tribune, January 9^th, 2015.