| Case ID |
2185edf6-a121-456d-8616-d6f0d6d0bbdd |
| Body |
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| Case Number |
Show-cause Notices Nos. 63 and 64 of 2010 |
| Decision Date |
Mar 22, 2011 |
| Hearing Date |
Dec 22, 2010 |
| Decision |
The Competition Commission of Pakistan found that the Strategic Services Agreement between Wateen Telecom and the Defence Housing Authority restricted competition and violated Section 4 of the Competition Act, 2010. The exclusivity clause prevented other service providers from entering the DHA region, thus creating an anti-competitive environment. Consequently, the Commission imposed a penalty of Rs. 10 million on the Defence Housing Authority and Rs. 5 million on Wateen Telecom. The Commission directed both parties to modify the agreement to ensure compliance with the law, emphasizing that future agreements must not create barriers to competition. |
| Summary |
The case revolves around the Strategic Services Agreement between Wateen Telecom and the Defence Housing Authority (DHA), which was found to create significant barriers to competition in the telecommunications market within DHA. The Competition Commission of Pakistan ruled that the exclusivity granted to Wateen violated Section 4 of the Competition Act, 2010, as it prevented other telecommunications providers from entering the market. This decision also highlights the importance of adhering to competition laws to foster a competitive environment that benefits consumers. The ruling included penalties for both parties involved, emphasizing the need for compliance and modification of existing agreements to align with competitive practices. As telecommunications continue to evolve, ensuring fair competition remains crucial for consumers' access to diverse services and pricing. The ruling serves as a precedent for similar cases where exclusivity may hinder market competition, encouraging regulatory bodies to scrutinize such agreements rigorously. |
| Court |
Competition Commission of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
RAHAT KAUNAIN HASSAN,
VADIYYA S. KHALIL
|
| Lawyers |
Asim Hafeez
|
| Petitioners |
Not available
|
| Respondents |
Wateen Telecom (Pvt.) Limited,
Defence Housing Authority
|
| Citations |
2011 SLD 160,
2011 CLD 1376
|
| Other Citations |
Kowtha Suryanarayan Rao v. Bank of Hindustan Ltd. (1953) 23 Comp Case 168 (Mad),
Khan Asfandyar Wali v. Federation of Pakistan PLD 2001 SC 607,
Muhammad Waseem v. Sessions Judge, Islamabad 2004 YLR 2867
|
| Laws Involved |
Competition Act, 2010
|
| Sections |
4,
5,
9
|