Law: Competition Act, 2010

Section: 4

Competition Act (XIX of 2010)---Ss. 4 & 38(3)---Abuse of dominant position---Institution of Chartered Accountants of Pakistan (ICAP), issued 'July Directive' whereby it had prohibited its members and chartered accountant firms from training non-ICAP accountancy students---'ICAP', maintained that pursuant to subsequent directive (October Circular), said prohibition was narrowed down to such members and accountancy firms who were approved training organization of 'ICAP'---Said 'July Directive', had a wider scope and had placed an absolute bar on all members of 'ICAP' engaging trainees of other accounting bodies---Contention of 'ICAP' that subsequent to the 'October circular', show-cause notice issued to it had lost its basis had no merit---Such prohibition on accountancy firm foreclosed, shut out and precluded not only a large segment of the relevant market for non-ICAP students, but the most valuable segment---Accountancy firms were restricted in their choice and freedom to engage a trainee; while it deprived the non-ICAP students, both quantitatively and qualitatively, from gaining such experience, practically from the most prestigious segment of the training market which adversely impacts the accountancy firms as well as the value of the qualification offered by direct competitors of 'ICAP', thereby restricting, preventing and reducing competition in the relevant market---Normally, each accountancy body had a best of public practice firms and/or commercial organizations, which were recognized for imparting training, necessary to complete the requirements for getting membership of the institute---Those recognized trainers, then accept accountancy students and certify that experience gained by the students---Training through a public practice accounting firms, was a valuable form of training for accountancy students---Said 'July Directive', had also created a barrier for those students seeking entry in the market for provision of accountancy services in Pakistan---'ICAP' need not ban its members from training students of other accountancy bodies to purportedly improve the quality of training for their own students---'ICAP' ought not discourage, discriminate…

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