SC cautions CCP on penalty use
Says competition advocacy should prevent anti-competitive conduct
The Supreme Court has advised the Competition Commission of Pakistan (CCP) to focus on promoting economic efficiency and lowering business costs through policies, rather than solely using penalties. This recommendation was made in a nine-page judgment authored by Justice Jamal Khan Mandokhail while addressing an appeal against a Rs50 million penalty for violating the Competition Act of 2010.
The court emphasized that Article 38 of the Constitution obligates the government to ensure the economic and social welfare of its citizens. It suggested that appropriate government policies could incentivize businesses to reduce operational costs, leading to lower prices for consumers.
The judgment stated that the CCP can advise the government on such policies and advise businesses on compliance with the Competition Act. The court highlighted that competition advocacy can bring about positive behavioral changes among various stakeholders, including manufacturers, consumers, and suppliers.
Moreover, the court noted that the CCP should first bring attention to potential issues under the Competition Act and advise businesses accordingly before taking enforcement action. The court stressed that preventing anti-competitive behavior should be the CCP's primary focus, with enforcement being a secondary measure when necessary.
The judgment clarified that while the power to impose penalties is an essential part of the CCP's mandate, it should only be used as a last resort after all other efforts to promote competition and ensure compliance have failed.
Written by urgent.news from The Express Tribune - Pakistan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
