Tazeen Akhtar
In a very very rare development, the powerful media industry of Pakistan has been finally fixed by The Competition Commission of Pakistan (CCP) that has enforced an order against the All Pakistan Newspapers Society (APNS), recovering a penalty of PKR 5 million imposed for anti-competitive conduct. This is first time in Pakistan that highly influential organization of newspaper owners has been punished in this way.
CCP has imposed the fine on a complaint by Evacuee Trust Property Board (ETPB). Further , interestingly or unfortunately ETPB itself is considered one of the most corrupt departments of Pakistan. ETPB looks after the properties that were left by Hindus mainly in Pakistan at the time of the partition of sub continent.
This ETPB filed a complaint with CCP, wherein it was alleged that Regulations and Circulars formulated by APNS were in violation of section 4 of the Competition Act, 2010. The CCP’s enquiry inter alia established that APNS had imposed restrictive trading conditions, and certain rules, regulations, and circulars enforced by APNS were in contravention of the Act.
On 6 June 2018, CCP passed an order and held that APNS had engaged in anti-competitive activities such as applying unfair trading conditions and imposing dissimilar conditions on equivalent transactions with other trading parties through its circulars, rules, and regulations. CCP recognized APNS’s cooperation and compliance-orientated approach as the mitigating factor and imposed a penalty of only PKR 10 million.
The CCP’s order also nullified all such circulars, rules, and regulations and directed APNS to formulate new ones and seek exemption from the CCP under Section 5 of the Competition Act. Additionally, the order stipulated that failure to comply would result in an additional penalty of PKR 25 million and a daily penalty of PKR 100,000.
APNS appealed the CCP’s order before the Competition Appellate Tribunal (CAT). After a detailed hearing, the Tribunal partially allowed the appeal by reducing the penalty to PKR 5 million. The CAT further directed APNS to submit its amended circulars, rules, and regulations to the CCP within one month.
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The Tribunal also held that the additional penalty of PKR 25 million and the daily penalty would not apply if the CCP endorsed the amended rules and regulations within 60 days.
As mentioned above, ETPB itself has a bad repute among the public for misuse and exploitation of the evacuee properties. The properties are allotted on long lease agreements to the favorites on nominal rents. There is not solid and fool proof arrangement of keeping a record of income from the shrines. Hundreds of thousands of followers of shrines visit there and donate money as well.
Few years ago, one Chairman of ETPB, Mr. Asif Shah was the hot topic among the print media (newspapers) people for he released advertisements of multi million rupees and earned commissions from the advertisement agencies. Many newspapers were not paid the bills of that advertisements. The advertisement agencies explained to the newspapers that issuing authority has not issued the amounts due toward ETPB.
Honorable Competition Commission of Pakistan may see this side as well. APNS can follow up the fine with this advertisements case or CCP should take suo moto notice and do the needful in this highly unjustified matter.
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