Law: Competition Act, 2010

Section: 2(1)(q),4,38

(a) Competition Act (XIX of 2010)--- ----S. 2(1)(q)---Terms 'association' and 'association of undertakings'---Scope---Notice was issued to Pakistan Flour Mills Association (PFMA) for anti-competitive practices in market---Objection raised by PFMA was that proceedings against it were not maintainable as it was not an undertaking---Validity---Term 'association' could be of a natural person or legal persons for social causes or economic purposes---For an association to be an undertaking it was to be performing economic functions, i.e., it was engaged in provision of goods or services---For an 'association of undertakings' Legislature had not prescribed any condition---Plain and ordinary language of S. 2(1)(q) of Competition Act, 2010 provided that it should be an association of 'undertakings'---Where members were 'undertakings' within meaning of S. 2(1)(q) of Competition Act, 2010 it was deemed to be an association of undertakings---PFMA was an association of flour millers who were undertakings engaged in production and supply of wheat flour and all other products which were extracted from grinding of wheat--- PFMA was an "association of undertakings" and was therefore an "undertaking" in terms of S. 2(1)(q) of Competition Act, 2010---Proceedings against PFMA were maintainable under circumstances. (b) Competition Act (XIX of 2010)--- ----Ss. 4 & 38---Anti-competitive practices---Show cause notice, issuance of---Imposition of fine---State Compulsion, doctrine of---Regulatory Conduct Defense---Applicability---Notice was issued to Pakistan Flour Mills Association (PFMA) for anti-competitive practices in market---Contention of authorities was that State Compulsion Doctrine or Regulatory Conduct Defense was not available to Association---Validity---PFMA was not requiring its members to comply with maximum cap determined by Government, in fact, PFMA was fixing one price for all millers and circulating same for compliance---By giving instructions to sell wheat flour at a fixed price, PFMA primarily took away bargaining power from retailers and consumers, vis-a-vis sale and purchase of wheat flour independently---Choice of different prices was not made available to end…

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