CCP Is Not A Price Regulator, Clarifies CCP Chairperson.

ISLAMABAD -- Karachi Chamber of Commerce and Industry (KCCI) held an advocacy session with the Competition Commission of Pakistan (CCP) where the representatives of the chamber apprised the CCP of different competition issues and sought its help in creating a level playing field and removing entry barriers in the different sectors.

Chairperson Ms Rahat Kaunain Hassan said that the CCP has imposed penalties of up to Rs70 billion for different violations of the Competition Act on various sectors. However, the recovery remains paltry due to the fact that most of the undertakings have challenged the CCP's orders in the higher courts where the due process of judicial review is underway. The real effectiveness of the CCP's orders will be felt once the judicial review process is complete, particularly in the cartel cases, which call for prioritization for the harm it incurs to the economy, she added. The chairperson further said that as an institution, the CCP is accountable for its mandate, but in the pending cases, the review process has to take its course.

Rahat Kaunain said that as against the general impression, the CCP is not a price regulator, but it only intervenes where the prices of goods and services are affected by anti-competitive practices such as abuse of dominance and cartelization. The main job of the CCP is to make sure that markets are functioning in compliance with the competition rules and regulations. She further said that the CCP is not against businesses; rather the Competition Law is pro-business and pro-growth, however, without strict enforcement of the law, a competition culture cannot prevail. She informed that as per OECD reports/estimates, prices can go down 25-30 percent if cartels are busted.

During the session, members of KCCI brought several issues and competition related matters to the CCP's notice. The chairperson offered that the CCP can change its regulations to exempt the Chambers of Commerce from charging of fee for filing formal complaints in endeavouring to address concern in resolving competition issues.

She informed that the informant reward scheme and leniency provisions are available which the business community can benefit from and help the CCP in identifying the anti-competitive issues. She assured the CCP's full support in resolving the competition issues and creating a level playing field.

Earlier, President KCCI Muhammad Idrees, while welcoming the CCP chairperson, stated that CCP undoubtedly...