Court backs CCP’s role in regulating competition, dismisses challenge
ISLAMABAD: In a significant ruling, the Lahore High Court, presided over by Justice Jawad Hassan, has affirmed the legitimacy of show-cause notices issued by the Competition Commission of Pakistan (CCP) regarding the price-fixing of day-old chicks. This decision reinforces the CCP’s mandate to conduct investigations and take action against monopolistic behaviors, thus ensuring a competitive market landscape.CCP conducts advocacy session with Chainstore Association of Pakistan (CAP)
Justice Jawad Hassan highlighted that a show-cause notice based on an inquiry report cannot be challenged prematurely in the High Court. Citing the legal principle of “ripeness,” he stated that cases should advance through CCP proceedings, with appeals permitted only after the CCP’s conclusive decision. The ruling clarifies the CCP’s jurisdiction, protecting its independence to implement competition laws without unwarranted interference.
The court acknowledged that impeding the functions of the CCP could obstruct its ability to prevent anti-competitive behaviors and promote fair business practices. Justice Hassan stressed the judiciary’s responsibility to assist regulatory agencies like the CCP in maintaining competitive integrity across various sectors.
The petitioner’s attorney contended that there were procedural irregularities in the inquiry report, arguing that the show-cause notices should not have been issued. However, the CCP’s legal team, including Barrister Asad Ullah Chatha and advisors Barrister Ambreen Abbasi, Hafiz Muhammad Naeem, and Hassan Raza, disputed the admissibility of the petition, a stance ultimately upheld by the court.
The CCP investigated alleged collusion and price-fixing by eight hatcheries concerning day-old broiler chicks from 2019 to June 2021. Forensic examinations indicated that pricing was coordinated via SMS and WhatsApp by an official from a member firm. Additionally, the Pakistan Poultry Association (PPA) was found to potentially violate Section 4 of the Competition Act due to its involvement in pricing negotiations. However, the poultry companies M/s Sadiq Poultry and M/s Islamabad Feeds contested the show-cause notices and obtained a stay order, temporarily suspending the CCP’s proceedings. This detailed 21-page judgment now serves as a precedent, reinforcing the CCP’s authority to enforce anti-trust regulations and promote fair competition in Pakistan’s economic environment.
CCP Chairman Dr. Kabir Sidhu has strategically bolstered the CCP’s legal team to enhance its capacity in addressing complex competition issues and regulatory challenges. This restructuring has improved operational efficiency and prioritized the resolution of legal backlogs. Consequently, over 40 cases have been resolved by the Competition Appellate Tribunal (CAT), High Courts, and the Supreme Court of Pakistan, resulting in the recovery of Rs100 million from businesses engaged in anti-competitive practices.
