Law:

Section:

Competition Ordinance (LII of 2007)--Ss. 3, 4, 33 & 37---Abuse of dominant position-Imposition of penalty-Competition Commission of Pakistan took notice of the media report that PIA was charging exorbitant Hajj fares and thereupon wrote a letter to PIA to determine the facts---Two separate allegations of abuse of dominance had been made against PIA, first pertained to price discrimination between regular passengers who fly on scheduled flights between destination in Pakistan and Saudi Arabia and the other that pilgrims availing the short term package and travel by the scheduled flights--Price discrimination was a term that economists use to describe the practice of selling the same product to different customers at different price, even though the cost of sale was the same to each of them, more precisely, it was selling at a price or prices such that the ratio of price to marginal costs was different in different sales--PIA charged between Rs.41,500 to Rs.46,250 for a round-trip economy class in 2008 from non-Hajj passengers while it charged between Rs.100,000 to Rs.120,000 on the same routes from Hal passengers---From its own submission, PIA had admitted that it charged higher fares from Hail passengers as compared to non-Hajj passengers---Charging of different fares from passengers based on their pilgrims status, amounted to price discrimination, which was prima fade violation of S.3(1) of Competition Ordinance, 2007---PIA's actions were not a State compulsion, neither a regulated conduct that would enable it to enjoy immunity from the application of Competition Ordinance, 2007-PIA, in circumstances, had violated S.3(1) of Competition Ordinance, 2007---On account of unreasonable increase in Hajj fare during the year 2008 as compared to Hajj Season 2007, PIA had abused its dominant position---Taking lenient view a token penalty of rupees ten million was imposed on PIA--On the count of discrimination between Half passengers and regular passengers on scheduled flights, PIA was directed to work out an amount of refund to be paid back to the Hajjis based on the difference of fare between regular passengers and Hajjis within specified period. ORDER I. Issues 1.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492