Islamabad High Court Allows CCP to Proceed With Inquiry Against Transworld Associates

The Islamabad High Court has allowed the Competition Commission of Pakistan (CCP) to proceed with its inquiry against Transworld Associates (Private) Limited for alleged abuse of its dominant position. The CCP initiated the inquiry and sent letters to Transworld regarding its suspected abuse of its dominant position, potentially violating Section 3 of the Competition Act, 2010. Transworld had challenged the CCP’s letters in court and obtained a stay order, halting the CCP from concluding its inquiry. During the court proceedings, the CCP informed the court that it had internally concluded that the complaint against Transworld raised suspicions of breaching Section 3 of the Act, warranting an inquiry. The Court recognized the CCP’s stance and allowed it to continue with the inquiry. However, it directed the CCP to communicate with Transworld by issuing a rectificatory letter, outlining the gist of the reasons for initiating the inquiry as held by the Supreme Court in the Dalda Foods Case. In Dalda Foods Judgment, the Supreme Court of Pakistan upheld the CCP’s statutory powers regarding the gathering of information and conducting of inquiries. The SC three-member bench emphasized that there is no restriction on the CCP’s general regulatory powers to gather information. The Court also emphasized the obligation of undertakings to fully comply with the CCP’s directives for the provision of information. The case was dismissed by the Supreme Court in CCP’s favor.