Law: Competition Act, 2010

Section: 4

Competition Act (XIX of 2010)--Ss. 4(1)(2)(a), 30, 33, 34 & 38---Prohibited agreement---Fixing selling price of provision of service by Ship's Agents---Imposition of penalty---Competition Commission, received information that Pakistan Ship's Agents Association, which was the sole licensed trade association for shipping, could be involved in collusive practices regarding determination of ancillary charges pertaining to shipping services by various ship agents---Competition Commission appointed Enquiry Officer, which searched the premises of the Association and reported to the Commission that prima facie, there was evidence of violation of S.4 of Competition Act, 2010---Enquiry Report recommended that Commission should proceed against the Association under S.30 of Competition Act, 2010--- Enquiry Report and other communications and evidence on record had established, Association's role in developing and negotiating the range of charges for ancillary services offered by its members, which amounted to fixing the selling price of provision of a service as described in clause (a) of subsection (2) of S.4 of Competition Act, 2010---Actions and business practice of Association and its members had allegedly violated S.4(1)(2)(a) of Competition Act, 2010----Keeping in view the mitigating factors and Association's co-operative conduct and professed commitment to support the competition regime in Pakistan, the Competition commission required that Association, would pay a nominal penalty of Rs. One million under S. 38 of the Competition Act, 2010 and pass a resolution as mentioned in Para 9(a) of the present order of the commission. Tika Iqbal Muhammad Khan and others v. General Pervez Musharaf PLD 2008 SC 178 and Sindh High Court Bar Association and another v. Federation of Pakistan and others PLD 2009 SC 879 rel. ORDER 1. In March 2010, the Competition Commission of Pakistan (the 'Commission') was alerted to possible violation of subsection (1) of section 4 read with clause (a) of subsection (2) of the Competition Act, 2010 (the 'Act'). It took appropriate action and subsequently under section 30 of the Act issued show cause notice No.2 of 2011 dated 14 February, 2011…

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