| Case ID |
d8240543-d5ae-4e58-a767-4820607bee83 |
| Body |
View case body. Login to View |
| Case Number |
|
| Decision Date |
Jun 28, 2012 |
| Hearing Date |
May 03, 2012 |
| Decision |
The Competition Commission of Pakistan found that the member banks of 1-Link Guarantee Ltd. had engaged in anti-competitive practices by fixing uniform ATM withdrawal fees, which restricted competition in violation of the Competition Act, 2010. The Commission directed banks to cease collective decision-making regarding fees and to ensure independent pricing practices. It was determined that the actions of the banks led to a significant impact on market competition, particularly affecting consumers by limiting their choices and increasing transaction costs. The Commission emphasized the importance of maintaining competitive practices in the banking sector to foster a healthy economic environment. |
| Summary |
This case revolves around the Competition Commission of Pakistan's investigation into the practices of 1-Link Guarantee Ltd. and its member banks regarding ATM cash withdrawal fees. The Commission found that the banks had collectively set a uniform fee, which constituted a prohibited agreement under the Competition Act, 2010. The ruling emphasized the necessity for competitive practices in the banking sector to protect consumer interests and ensure fair pricing. The Commission's decision highlighted the adverse effects of collusion among banks on market dynamics and consumer choice. It also underscored the role of the State Bank of Pakistan in regulating banking practices without imposing fixed fees, thus allowing banks to determine their pricing strategies within the established ceiling. The ruling is significant for maintaining healthy competition and ensuring that consumers benefit from diverse banking services. |
| Court |
Competition Commission of Pakistan
|
| Entities Involved |
1-Link Guarantee Ltd.,
Bank of Khyber,
National Bank of Pakistan,
Allied Bank Limited,
Habib Bank Limited,
Bank Al-Falah Limited,
Askari Bank Limited,
Soneri Bank Limited,
NIB Bank Limited,
United Bank Limited,
Standard Chartered Bank Pakistan Limited,
Faysal Bank Limited,
Bank Al Habib Limited,
Albaraka Bank Pakistan Limited,
Burj Bank Limited,
Meezan Bank Limited,
Bank Islami,
Khadim Ali Shah Bukhari Bank Limited,
Habib Metropolitan Bank Limited,
Dubai Islamic Bank Pakistan Limited,
JS Bank Limited,
Silk Bank Limited,
The Bank of Punjab,
Citi Bank Pakistan,
Samba Bank Limited,
Sindh Bank Limited,
Barclays Bank PLC, Pakistan Limited,
Tameer Microfinance Bank Limited,
Summit Bank Limited,
Kashf Micro Finance Bank
|
| Judges |
MS. RAHAT KAUNAIN HASSAN, CHAIRPERSON,
ABDUL GHAFFAR, MEMBER,
DR. JOSEPH WILSON, MEMBER
|
| Lawyers |
Sheikh Imtiaz Ahmed, Advocate Supreme Court for Bank of Khyber
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2012 SLD 1323 = 2012 CLD 1762
|
| Other Citations |
Not available
|
| Laws Involved |
Competition Act, 2010
|
| Sections |
2,
4,
5,
9
|