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Federal · Act · 2010

Competition Act, 2010

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THE COMPETITION ACT, 2010.

THE COMPETITION ACT, 2010 ACT NO. XIX OF 2010 [6th October, 2010] An Act to provide for free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti competitive behavior.

WHEREAS it is expedient to make provisions to ensure free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behavior and to provide for the establishment of the Competition Commission of Pakistan to maintain and enhance competition; and for matters connected therewith or incidental thereto;

It is hereby enacted as follows:___

CHAPTER I

PRELIMINARY

Section 1. Short title, extent, application and commencement

(1) This Act may be called the Competition Act, 2010.

(2) It extends to the whole of Pakistan.

(3) It shall apply to all undertakings and all actions or matters that take place in Pakistan and distort competition within Pakistan.

(4) It shall come into force at once.

Section 2. Definitions

(1) In this Act, unless there is anything repugnant in the subject or context;__

(a) “acquisition” means any change of control of any undertaking by way of acquisition of Shares, assets or any other means;

(b) “agreement” includes any arrangement, understanding or practice, whether or not it is in writing or intended to be legally enforceable;

(c) “Chairman” means the Chairman of the Commission and includes the Acting Chairman;

(d) “Commission” means the Competition Commission of Pakistan established under section 12;

(e) “dominant position” of one undertaking or several undertakings in a relevant market shall be deemed to exist if such undertaking or undertakings have the ability to behave to an appreciable extent independently of competitors, customers, consumers and suppliers and the position of an undertaking shall be presumed to be dominant if its share of the relevant market exceeds forty percent;

(f) “goods” includes any item, raw material, product or by-product which is sold for consideration;

(g) “Member” means a member of the Commission;

(h) “merger” means the merger, acquisition, amalgamation, combination or joining of two or more undertakings or part thereof into an existing undertaking or to form a new undertaking; and expression “merge” means to merge, acquire, amalgamate, combine or join, as the context may require;

(i) “Minister” means the Federal Minister for Finance and in his absence, the Adviser to the Prime Minister on Finance;

(j) “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984);

(k) “relevant market” means the market which shall be determined by the Commission with reference to a product market and a geographic market and a product market comprises all those products or services which are regarded as interchangeable or Substitutable by the consumers by reason of the products' characteristics, prices and intended uses. A geographic market comprises the area in which the undertakings concerned are involved in the supply of products or services and in which the conditions of competition are sufficiently homogeneous and which can be distinguished from neighboring geographic areas because, in particular, the conditions of competition are appreciably different in those areas;

(l) “retailer”, in relation to the sale of any goods, means a person who sells the goods to any other person other than for re-sale;

(m) “regulations” means the regulations made by the Commission under this Act;

(n) “rules” means the rules made by the Federal Government under this Act;

(o) “services” means a service of any description whether industrial, trade, professional or otherwise;

(p) “Tribunal” means Competition Appellate Tribunal under section 43 of the Act;

(q) “undertaking” means any natural or legal person, governmental body including a regulatory authority, body corporate, partnership, association, trust or other entity in any way engaged, directly or indirectly, in the production, supply, distribution of goods or provision or control of services and shall include an association of undertakings; and

(r) “wholesaler”, in relation to the sale of any goods, means a person who purchases goods and sells them to any other person for re-sale.

(2) The words and expressions used but not defined in this Act shall have the same meanings respectively assigned to them in the Ordinance.

CHAPTER II

PROHIBITION OF ABUSE OF DOMINANT POSITION, CERTAIN AGREEMENTS, DECEPTIVE MARKETING PRACTICES AND APPROVAL OF MERGERS

Section 3. Abuse of dominant position

(1) No person shall abuse dominant position.

(2) An abuse of dominant position shall be deemed to have been brought about, maintained or continued if it consists of practices which prevent, restrict, reduce or distort competition in the relevant market.

(3) The expression “practices referred to in sub-section (2) shall include, but are not limited to___

(a) limiting production, sales and unreasonable increases in price or other unfair trading conditions;

(b) price discrimination by charging different prices for the same goods or services from different customers in the absence of objective justifications that may justify different prices;

(c) tie-ins, where the sale of goods or service is made conditional on the purchase of other goods or services;

(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which by their nature or according to commercial usage, have no connection with the subject of the contracts;

(e) applying dissimilar conditions to equivalent transactions on other parties, placing them at a competitive disadvantage;

(f) predatory pricing driving competitors out of a market, prevent new entry, and monopolize the market;

(g) boycotting or excluding any other undertaking from the production, distribution or sale of any goods or the provision of any service; or

(h) refusing to deal.

Section 4. Prohibited agreements

(l) No undertaking or association of undertakings shall enter into any agreement or, in the case of an association of undertakings, shall make a decision in respect of the production, supply, distribution, acquisition or control of goods or the provision of services which have the object or effect of preventing, restricting, or reducing competition within the relevant market unless exempted under section 5.

(2) Such agreements include, but are not limited to___

(a) fixing the purchase or selling price or imposing any other restrictive trading conditions with regard to the sale or distribution of any goods or the provision of any service;

(b) dividing or sharing of markets for goods or services, whether by territories, by volume of sales or purchases, by type of goods or services sold or by any other means;

(c) fixing or setting the quantity of production, distribution or sale with regard to any goods or the manner or means of providing any services;

(d) limiting technical development or investment with regard to the production, distribution or sale of any goods or the provision of any service; or

(e) collusive tendering or bidding for sale, purchase or procurement of any goods or services.

(f) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a disadvantage; and

(g) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

(3) Any agreement entered into in contravention of the provision in sub-section (1) shall be

void.

Section 5. Individual exemption

(1) The Commission may grant an exemption from section 4 with respect to a particular practice or agreement, if a request for an exemption has been made to it by a party to the agreement or practice and the agreement is one to which section 9 applies.

(2) The exemption under sub-section (1) may be granted subject to such conditions as the Commission considers it appropriate to impose and has effect for such period as the Commission considers appropriate.

(3) That period must be specified in the grant of the exemption.

(4) An individual exemption may be granted so as to have effect from a date earlier than that on which it is granted.

(5) On an application made in such a way as may be specified by the rules made under section 55, the Commission may extend the period for which an exemption has effect; but, if the rules so provide, the Commission may do so only in specified circumstances.

Section 6. Cancellation, etc., of individual exemptions

(1) If the Commission has reasonable grounds for believing that there has been a material change of circumstances since it granted an individual exemption, it may by notice in writing__

(a) cancel the exemption;

(b) vary or remove any condition or obligation; or

(c) impose one or more additional conditions or obligations.

(2) If the Commission has reasonable suspicion that the information on which it based its decision to grant an individual exemption was incomplete, false or misleading in a material

particular, the Commission may by notice in writing take any of the steps mentioned in sub-section (1).

(3) Breach of a condition has the effect of cancelling the exemption.

(4) Failure to comply with an obligation allows the Commission, by notice in writing to take any of the steps mentioned in sub-section (1).

(5) The Commission may act under this section on its own initiative or on complaint made by any person.

Section 7. Block exemption

(1) If agreements which fall within a particular category of agreements are, in the opinion of the Commission, likely to be agreements to which section 9 applies, the Commission may make a block exemption order giving exemption to such agreements.

(2) A block exemption order may impose conditions or obligations subject to which a block exemption is to have effect.

(3) A block exemption order may provide__

(a) that breach of a condition imposed by the order has the effect of canceling the block exemption in respect of an agreement;

(b) that if there is a failure to comply with an obligation imposed by the order, the Commission may, by notice in writing, cancel the block exemption in respect of the agreement;

(c) that if the Commission considers that a particular agreement is not one to which section 9 applies, the Commission may cancel the block exemption in respect of that agreement.

(4) A block exemption order may provide that the order is to cease to have effect at the end of a period specified in the block exemption order.

Section 8. Block exemption procedure

(1) Before making a block exemption order, the Commission must__

(a) publish details of its proposed order in such a way as the Commission thinks most suitable for bringing it to the attention of those likely to be affected; and

(b) consider any representations about it which are made to the Commission.

(2) A block exemption order may provide for a block exemption to have effect from a date earlier than that on which the order is made.

Section 9. The criteria for individual and block exemptions

(1) The Commission may grant individual or block exemption in respect of an agreement, which substantially contributes to___

(a) improving production or distribution;

(b) promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit; or

(c) the benefits of that clearly outweigh the adverse effect of absence or lessening of competition.

(2) The onus of claiming an exemption under this Act shall lie on the undertaking seeking exemption.

Section 10. Deceptive marketing practices

(1) No undertaking shall enter into deceptive marketing practices.

(2) The deceptive marketing practices shall be deemed to have been resorted to or continued of an Undertaking resorts to__

(a) the distribution of false or misleading information that is capable of harming the business interests of another undertaking;

(b) the distribution of false or misleading information to consumers, including the distribution of information lacking a reasonable basis, related to the price, character, method or place of production, properties, suitability for use, or quality of goods;

(c) false or misleading comparison of goods in the process of advertising; or

(d) fraudulent use of another's trademark, firm name, or product labeling or packaging.

Section 11. Approval of mergers

(1) No undertaking shall enter into a merger which substantially lessens competition by creating or strengthening a dominant position in the relevant market.

(2) Notwithstanding the provisions contained in the Act where an undertaking, intends to acquire the shares or assets of another undertaking, or two or more undertakings intend to merge the whole or part of their businesses, and meet the pre-merger notification thresholds stipulated in regulations prescribed by the Commission, such undertaking or undertakings shall apply for clearance from the Commission of the intended merger.

(3) The concerned undertakings shall submit a pre-merger application to the Commission as soon as they agree in principle or sign a non-binding letter of intent to proceed with the merger.

(4) Application referred to in sub-section (3) shall be in the form and accompanied by a processing fee as may be prescribed by the Commission. The concerned undertakings shall not proceed with the intended merger until they have received clearance from the Commission.

(5) The Commission shall by way of an order reffered to in section 31, decide on whether the intended merger meets the thresholds and the presumption of dominance as determined in section 3. Such order shall be made within thirty days of receipt of the application.

(6) If so determined, the Commission shall initiate a second phase review and for that purpose the Commission may require the concerned undertakings to provide such information as it considers necessary to enable the Commission to make the necessary determination.

(7) Failure to make a determination within the prescribed period of thirty days for the first phase review shall mean that the Commission has no objection to the intended merger.

(8) On initiation of the second phase review the Commission shall, within ninety days of receipt of the requested information under sub-section (6), review the merger to assess whether it substantially lessens competition by creating or strengthening a dominant position in the relevant market, and shall give its decision on the proposed transaction. In case concerned undertakings fail to provide the information requested, the Commission may reject the application.

(9) Failure to render a decision within ninety days shall be deemed to mean that the Commission has no objection to the intended merger.

(10) If after the second phase review the Commission determines that the intended merger substantially lessens competition by creating or strengthening a dominant position, it may nonetheless approve the transaction, if it is shown that__

(a) it contributes substantially to the efficiency of the production or distribution of goods or to the provision of services;

(b) such efficiency could not reasonably have been achieved by a less restrictive means of competition;

(c) the benefits of such efficiency clearly outweigh the adverse effect of the absence or lessening of competition; or

(d) it is the least anti-competitive option for the failing undertaking's assets, when one of the undertakings is faced with actual or imminent financial failure:

Provided that the burden of proof shall lie with the undertaking seeking the approval.

(11) In case the Commission determines that the transaction under review does not qualify the criteria specified in sub-section (10), the Commission may;

(a) prohibit the consummation of the transaction;

(b) approve such transaction subject to the conditions laid by the Commission in its order;

(c) approve such transaction on the condition that the said undertakings enter into legally enforceable agreements specified by the Commission in its order.

(12) Where an undertaking has consummated the merger without complying with the provisions of sub-section (1) to sub-section (4), the Commission shall, after giving the undertaking an opportunity of being heard, make appropriate orders under section 31.

(13) Where the Commission has granted approval subject to conditions, the Commission may, within one year, review the order of approval of merger on its own or on the application of the undertakings concerned on the ground that it is satisfied that the circumstances of the relevant market or the undertakings have so changed as to warrant review of the conditions imposed.

(14) If the Commission determines that the approval was based on false or misleading information submitted by the undertaking, or the conditions prescribed in the relevant order of the Commission have not been fully complied with, the Commission may after affording the undertakings concerned an opportunity of being heard___

(a) undo such merger or acquisition; or

(b) prescribe modifications or additions in the original order.

CHAPTER III

COMPETITION COMMISSION OF PAKISTAN

Section 12. Establishment of Commission

(1) There is hereby established a Commission to be called the Competition Commission of Pakistan.

(2) The Commission shall be a body corporate with perpetual succession and common seal, and may sue and be sued in its own name and, subject to and for the purpose of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy moveable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of or deal with any moveable or immovable property or any interest vested in it, upon such terms as it deems fit.

(3) The Commission shall be administratively and functionally independent, and the Federal Government shall use its best efforts to promote, enhance and maintain the independence of the Commission.

Section 13. Head Office

The head office of the Commission shall be in Islamabad and the Commission may establish and close down offices at such other places in Pakistan as it considers necessary.

Section 14. Composition of Commission

(1) The Commission shall consist of not less than five and not more than seven members:

Provided that the Federal Government may increase or decrease the number of Members, from time to time, as it may consider appropriate.

(2) The Members shall be appointed by the Federal Government and from amongst the Members of the Commission, the Federal Government shall appoint the Chairman.

(3) All Members of the Commission shall serve on a full-time basis.

(4) Not more than two Members of the Commission shall be employees of the Federal Government.

(5) No person shall be recommended for appointment as a Member unless that person is known for his integrity, expertise, eminence and experience for not less than ten years in any relevant field including industry, commerce, economics, finance, law, accountancy or public administration:

Provided that the Federal Government may prescribe qualifications and experience and mode of appointment of such Members in such manner as it may prescribe.

(6) No person shall be appointed or continued as a Member if he__

(a) has been convicted of an offence involving moral turpitude;

(b) has been or is adjudged insolvent;

(c) is incapable of discharging his duties by reason of physical, psychological or mental unfitness and has been so declared by a registered medical practitioner appointed by the Federal Government;

(d) absents himself from three consecutive meetings of the Commission, without obtaining leave of the Commission;

(e) fails to disclose any conflict of interest at or within the time provided for such disclosure under this Act or contravenes any of the provisions of this Act pertaining to unauthorized disclosure of information; or

(f) deemed incapable of carrying out his responsibilities for any other reason.

(7) No act or proceeding of the Commission shall be invalid by reason of absence of a member or existence of vacancy among its members or any defect in the constitution thereof.

(8) No Member or officer of the Commission shall assume his office until he has made such declaration affirming secrecy and fidelity.

Section 15. The Chairman

(l) The Chairman shall be the chief executive of the Commission and shall, together with the other Members, be responsible for the administration of the affairs of the Commission.

(2) The Chairman may subject to such conditions as he may deem fit, from time to time delegate all or any of his powers and functions to any of the Members.

Section 16. The Acting Chairman

At any time when the position of the Chairman is vacant, or the Chairman is unable to perform his functions due to any cause, the Federal Government shall appoint the most senior Member of the Commission to be the Acting Chairman of the Commission until the appointment of a Chairman on a regular basis.

Section 17. Term of office

The Chairman and Members of the Commission shall be appointed for a term of three years on such salary, terms and conditions of service as the Federal Government may by rules prescribe:

Provided that the Chairman and Members shall be eligible for re-appointment for such term or terms but shall cease to hold office on attaining the age of sixty-five years or the expiry of the term whichever is earlier.

Section 18. Restriction on employment of the Chairman and other Members in certain cases

The Chairman and other Members shall not, for a period of one year from the date on which they cease to hold office, accept any employment in, or connected with the management or administration of, any undertaking with has been a party to any investigation before the Commission under this Act.

Section 19. Termination of appointment of Members

(1) Subject to sub-section (2), the appointment of any Member or the Chairman may, at any time, be revoked and he may be removed from his office by order of the Federal Government if it is found that such person has become disqualified under sub-section (6) of section 14.

(2) Unless a disqualification referred to in section (1) arises from the judgment or order of a Court or tribunal of competent jurisdiction under any relevant provision of applicable law, a Member or the Chairman shall not be removed or his appointment revoked without an enquiry by an impartial

person or body of persons constituted in accordance with such procedure as may be prescribed by rules made by the Federal Government and such rules shall provide for a reasonable opportunity for the Member or the Chairman to be heard in defence.

(3) A Member or the Chairman may resign his office at any time by notice in writing addressed to the Federal Government.

(4) A vacancy in the Commission caused by the death, resignation or removal of any Member or the Chairman shall be filled by the Federal Government within thirty days of the occurrence of such vacancy.

Section 20. Commission Fund

(l) There shall be established a fund to be known as the “CCP Fund” which shall vest in the Commission and shall be utilized by the Commission to meet charges in connection with the functioning of the Commission including payment of salaries and other remuneration to the Chairman, Members, officers, officials, experts, advisers, and consultants of the Commission.

(2) The Fund shall consist of,

(a) allocations or grants by the Federal Government;

(b) charges and fees levied by the Commission;

(c) contributions from local and foreign donors or agencies with the approval of the Federal Government;

(d) returns on investments and income from assets of the Commission; and

(e) all other sums which may in any manner become payable to or vested in the Commission;

(f) a percentage of the fees and charges levied by other regulatory agencies in Pakistan as prescribed by the Federal Government in consultation with the Commission and the percentage so prescribed shall not be varied to the disadvantage of the Commission.

(3) The Commission shall make regulations for incurring expenditures as well as investments from the Fund.

(4) The Commission may open and maintain accounts at such scheduled banks as it may from time to time determine. The Commission may with the approval of the Federal Government, open and maintain foreign currency accounts.

Section 21. Accounts and audits

(1) The Commission shall cause proper accounts to be kept and shall as soon as practicable after the end of each financial year cause to be prepared for that financial year a statement of accounts of the Commission which shall include a balance sheet and an account of income and expenditure.

(2) Within sixty days after the end of each financial year, the annual financial statements of the Commission shall be audited by the Auditor-General of Pakistan or by a firm of chartered accountants nominated by the Auditor-General of Pakistan.

(3) The auditors shall make a report to the commission upon the balance sheet and accounts and in such report they shall state whether in their opinion the balance sheet is a full and fair balance sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the affairs of the Commission and, in case they have called for any explanation or information from the Commission, whether it has been given and whether it is satisfactory.

Section 22. Annual report

(1) Within ninety days from the end of each financial year, the Commission shall cause a report to be prepared on the activities of the Commission (including investigations, advocacy activities, enquiries and merger reviews made by the Commission) during that financial year.

(2) The Commission shall, within one hundred and twenty days of the end of each financial year send a copy of the annual report of the Commission under sub-section (1) together with a copy of the statement of accounts of the Commission certified by the auditors and a copy of the auditors' report to the Federal Government which shall cause them to be published in the official Gazette and laid before both Houses of the Majlis-e-Shoora (Parliament) within two months of their receipt.

Section 23. Appointments by Commission

(1) The Commission may appoint such officers, officials, experts, advisers and consultants as it considers necessary to carry out such functions as may be prescribed by the Commission with such powers and on such terms and conditions as it may determine from time to time.

(2) The Commission may, by notification in the official Gazette, make regulations in respect of the terms and conditions of service of its employees.

Section 24. Meetings of Commission

(1) Subject to this section, the Chairman may convene such meetings of the Commission at such times and places as he considers necessary for the efficient performance of the functions of the Commission.

(2) The Chairman shall preside at every meeting of the Commission, and in the absence of Chairman, the Members may elect a Member to preside at the meeting.

(3) At any meeting of the Commission the quorum shall be three Members.

(4) All questions arising at any meeting of the Commission shall be determined by a majority of votes of the Members present and voting.

(5) In the event of an equality of votes, the Chairman shall have a casting vote.

(6) Subject to the provisions of this Act, the Chairman may give directions regarding the procedure to be followed at or in connection with any meeting of the Commission.

Section 25. Disclosure of interest by Members

(1) For the purpose of this and the next following section, a person shall be deemed to have an interest in a matter if he has any interest, pecuniary or otherwise, in such matter which could reasonably be regarded as giving rise to a conflict between his duty to honestly perform his functions under this Act and such interest, so that his ability to consider and decide any question impartially or to give any advice without bias, may reasonably be regarded as impaired.

(2) A Member having any interest in any matter to be discussed or decided by the Commission shall, prior to any discussion of the matter, disclose in writing, to the Commission, the fact of his interest and the nature thereof.

(3) A disclosure of interest under sub-section (2) shall be recorded in the minutes of the Commission, prior to any discussion of, or decision on, the matter and, after the disclosure, the Member:___

(a) shall not, save in the cases provided in sub-sections (4) to (6), take part nor be present in any deliberation or decision of the Commission; and

(b) shall be disregarded for the purpose of constitution of a quorum of the Commission.

(4) If a Member is not the Chairman and the Chairman becomes aware that a Member has a conflict of interest, the Chairman shall:__

(a) if the Chairman considers that the Member should not take part, or continue to take part, as the case may require, in determining the matter, direct the Member accordingly; or

(b) in any other case, cause the Member's interest to be disclosed to the persons concerned in the matter including any person whose application is pending decision or adjudication by the Commission, the Member in respect of whom a direction has been given under clause (a) shall comply with the direction.

(5) If the Member is the Chairman, he shall disclose his interest to the persons concerned in the matter including any person whose application is pending decision or adjudication by the Commission.

(6) Subject to sub-section (4), the Chairman or the Member who has any interest in any matter referred to in this section shall not take part, or continue to take part, as the case may require, in determining the matter unless everyone concerned in it consents to the Chairman or, as the case may be, the Member so taking part.

Section 26. Notification of interest by staff of Commission

(1) Where a person who, in the course of___

(a) performing a function, or exercising a power, as an officer of the Commission,

(b) performing functions or service as an employee, or

(c) performing a function or services in any capacity by way to assisting or advising the Commission, or any officer of the Commission, is required to consider a matter in which he has an interest, such person shall forthwith give to the Commission a written notice stating that he is required to consider the matter and has an interest in it and setting out particulars of the interest.

(2) The person referred to in sub-section (1) shall also declare his interest in accordance with the said sub-section whenever it is necessary to avoid the conflict of interest.

Section 27. Officers and employees, etc., to be public servants

The Chairman, Members, employees, experts, consultants and advisers of the Commission authorized to perform any function or exercise any power under this Act shall be deemed to be public servants within the meaning of section 21 of the Pakistan Penal Code, 1860 (Act XLV of 1860).

CHAPTER-IV FUNCTIONS AND POWERS OF THE COMMISSION

Section 28. Functions and powers of the Commission

(1) The functions and powers of the Commission shall be___

(a) to initiate proceedings in accordance with the procedures of this Act and make orders in cases of contravention of the provisions of the said Act;

(b) to conduct studies for promoting competition in all sectors of commercial economic activity;

(c) to conduct enquiries into the affairs of any undertaking as may be necessary for the purposes of this Act;

(d) to give advice to undertakings asking for the same as to whether any action proposed to be taken by such undertakings is consistent with the provisions of this Act, rules or orders made thereunder;

(e) to engage in competition advocacy; and

(f) to take all other actions as may be necessary for carrying out the purposes of this Act.

(2) The Commission may, subject to such conditions as it may think fit to impose, delegate all or any of its functions and powers to any of its Members or officers as it deems fit.

Section 29. Competition advocacy

The Commission shall promote competition through advocacy which, among others, shall include__

(a) creating awareness and imparting training about competition issues and taking such other actions as may be necessary for the promotion of a competition culture;

(b) reviewing policy frameworks for fostering competition and making suitable recommendations for amendments to this Act and any other laws that affect competition in Pakistan to the Federal Government and Provincial Governments;

(c) holding open hearings on any matter affecting the state of competition in Pakistan or affecting the country's commercial activities and expressing publicly an opinion with respect to the issues; and

(d) posting on its website all decisions made, inquiries under review and completed, merger guidelines, educational material and the like.

Section 30. Proceedings in cases of contravention

(1) Where the Commission is satisfied that there has been or is likely to be, a contravention of any provision of Chapter II, it may make one or more of such orders specified in section 31 as it may deem appropriate. The Commission may also impose a penalty at rates prescribed in section 38, in all cases of contravention of the provisions of Chapter II.

(2) Before making an order under sub-section (1), the Commission shall___

(a) give notice of its intention to make such order stating the reasons therefore to such undertaking as may appear to it to be in contravention; and

(b) give the undertaking an opportunity of being heard on such date as may be specified in the notice and of placing before the Commission facts and material in support of its contention:

Provided that in case the undertaking does not avail the opportunity of being heard, the Commission may decide the case ex parte.

(3) The Commission shall publish its Orders in the official Gazette, for the information of the public.

(4) An order made under sub-section (1) shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force or in any contract or memorandum or articles of association.

(5) Any order issued under this section shall include the reasons on which the order is based.

Section 31. Orders of the Commission

The Commission may in the case of___

(a) an abuse of dominant position, require the undertaking concerned to take such actions specified in the order as may be necessary to restore competition and not to repeat the prohibitions specified in Chapter II or to engage in any other practice with similar effect; and

(b) prohibited agreements, annul the agreement or require the undertaking concerned to amend the agreement or related practice and not to repeat the prohibitions specified in section 4 or to enter into any other agreement or engage in any other practice with a similar object or effect; or

(c) a deceptive marketing practice, require___

(i) the undertaking concerned to take such actions specified in the order as may be necessary to restore the previous market conditions and not to repeat the prohibitions specified in section 10; or

(ii) confiscation, forfeiture or destruction of any goods having hazardous or harmful effect.

(d) A merger, in addition to the provisions contained in section 11__

(i) authorize the merger, possibly setting forth the conditions to which the acquisition is subject, as prescribed in regulations;

(ii) decide that it has doubts as to the compatibility of the merger with Chapter II, thereby opening a second phase review; or

(iii) undo or prohibit the merger, but only as a conclusion of the second phase review.

Section 32. Power to issue interim orders

(1) Where, during the course of any proceeding under section 30, the Commission is of opinion that the issuance of a final order in the proceedings is likely to take time and that, in the situation that exists or is likely to emerge, serious or irreparable damage may occur and an interim Order is necessary in the public interest, it may, after giving the undertaking concerned an opportunity of being heard, by order, direct such undertaking to do or refrain from doing or continuing to do any act or thing specified in the order.

(2) An order made under sub-section (1) may, at any time, be reviewed, modified or cancelled by the Commission and, unless so cancelled, shall remain in force for such period as may be specified therein but not beyond the date of the final order made under section 31.

Section 33. Powers of the Commission in relation to a proceeding or enquiry

(1) The Commission shall, for the purpose of a proceeding or enquiry under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (Act V of 1908), while trying a suit, in respect of the following matters, namely:

(a) summoning and enforcing the attendance of any witness and examining him on oath;

(b) discovery and production of any document or other material object producible as evidence;

(c) accept evidence on affidavits;

(d) requisitioning of any public record from any court or office; and

(e) issuing of a commission for the examination of any witness, document or both.

(2) Any proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Pakistan Penal Code (Act XLV of 1860), and the Commission shall be deemed to be civil court for the purposes of section 195 and Chapter XXXV of the code of Criminal Procedure, 1898 (Act V of 1898).

(3) The Commission may, for the purpose of a proceeding or enquiry under this Act, require any undertaking:

(a) to produce before, and to allow to be examined and kept by, an officer of the Commission specified in this behalf, any books, accounts, or other documents in the custody or under the control of the undertaking so required, being documents relating to any matter the examination of which may be necessary for the purposes of this Act; and

(b) to furnish to an officer so specified such information in its possession, relating to any matter as may be, necessary for the purpose of this Act.

Section 34. Power to enter and search premises

(1) Notwithstanding anything contained in any other law for the time being in force, the Commission for reasonable grounds to be recorded in writing shall have the power to authorize any officer to enter and search any premises for the purpose of enforcing any provision of this Act.

(2) For the purpose of sub-section (1), the Commission__

(a) shall have full and free access to any premises, place, accounts, documents or computer;

(b) may stamp, or make an extract or copy of any accounts, documents or computer-stored information to which access is obtained under clause (a);

(c) may impound any accounts or documents and retain them for as long as may be necessary for the purposes of the Act;

(d) may where a hard copy or computer disk of information stored on a computer is not made available, impound and retain the computer for as long as is necessary to copy the information required; and

(e) may make an inventory of any article found in any premises or place to which access is obtained under clause (a).

(3) Any officer of the Commission who seeks to exercise the right to enter and search premises shall be required to provide evidence of his authority to act on behalf of the Commission.

(4) The Commission may authorize any valuer to enter any premises or place to inspect such accounts and documents as may be necessary to enable the valuer to make a valuation of an asset for the purpose of this Act.

(5) The occupier of any premises or place to which access is sought under sub-section (1) shall provide all reasonable facilities and assistance to ensure the effective exercise of the right of access.

(6) Any accounts, documents or computer impounded and retained under sub-section (2) and

(3) shall be signed for by the Commission or an authorized officer.

(7) An undertaking whose accounts, documents or computer have been impounded and retained under sub-section (2) may examine them and make an extract or copy from them during regular office hours under such supervision as the Commission may determine.

Explanation.__ In this section, the expression “Occupier”, in relation to any premises or place, includes the owner, manager or any other person found present on the premises or place.

Section 35. Forcible entry

(l) In the event that an undertaking refuses without reasonable cause to allow the Commission to exercise the powers contained in section 34, an investigating officer of the Commission may by written order, signed by any two Members enter any place or building by force, if necessary.

(2) Notwithstanding anything contained in sub-section (1), no investigating officer of the Commission shall enter any premises by the use of force without a written order of the Commission signed by two Members.

(3) If, on enquiry conducted in accordance with the rules it is found that the exercise by an investigating officer of his power under sub-section (2) was vexatious, excessive or with mala fide intent such officer shall be dismissed from service, and shall be guilty of an offence and shall be liable on conviction to a fine which may extend to five hundred thousand rupees or to imprisonment for a term not exceeding one year or both.

(4) Whenever a criminal court imposes a fine under sub-section (3) it shall, when passing judgment, order that a sum equal to the whole or any part of the fine recovered, be paid to the person on whose complaint the investigating officer was convicted, and in case the fine is not recovered the sum shall be paid out of the Fund.

(5) Any sum paid under sub-section (4) shall be without prejudice to the right of the aggrieved person to avail any other remedies available to him under the law but at the time of awarding compensation in any subsequent proceedings relating to the, same matter the court shall take into account any sum recovered from the convict and paid to the aggrieved person.

Section 36. Power to call for information relating to undertaking

Notwithstanding anything contained in any other law for the time being in force, the Commission may, by general or special order, call upon an undertaking to furnish periodically or as and when required any information concerning the activities of the undertaking, including information relating to its organization, accounts, business, trade practices, management and connection with any other undertaking, which the Commission may consider necessary or useful for the purposes of this Act.

Section 37. Enquiry and studies

(1) The Commission may, on its own, and shall upon a reference made to it by the Federal Government, conduct enquiries into any matter relevant to the purposes of this Act.

(2) Where the Commission receives from an undertaking or a registered association of consumers a complaint in writing of such facts as appear to constitute a contravention of the provisions of Chapter II, it shall, unless it is of opinion that the application is frivolous or vexatious or based on insufficient facts, or is not substantiated by prima facie evidence, conduct an enquiry into the matter to which the complaint relates.

(3) The Commission may outsource studies by hiring consultants on contract.

(4) If upon the conclusion of an inquiry under sub-section (1) or sub-section (2), the Commission is of opinion that the findings are such that it is necessary in the public interest so to do, it shall initiate proceedings under section 30. CHAPTER-V PENALTIES AND APPEALS

Section 38. Penalty

(1) The Commission may by order direct any undertaking or any director, officer or employee of an undertaking, to pay by way of penalty such sum as may be specified in the order if, after giving the undertaking concerned an opportunity of being heard, it determines that such undertaking:___

(a) has been found engaged in any activity prohibited under this Act;

(b) has failed to comply with an order of the Commission made under this Act;

(c) has failed to supply a copy of the agreement or any other documents and information as required under this Act or requisitioned by the Commission;

(d) has furnished any information or made any statement to the Commission which such undertaking knows or has reason to believe to be false or found by the Commission to be inaccurate; or

(e) knowingly abuses, interferes with, impedes, imperils, or obstructs the process of the Commission in any manner:

Provided that fair comments made in good faith and in the public interest on the working of the Commission or on any order of the Commission issued after the completion of any proceedings, shall not be subject to the imposition of a penalty.

(2) The Commission may impose penalties at the following rates, namely:___

(a) for a contravention of any provision of Chapter II of the Act, an amount not exceeding seventy-five million rupees or an amount not exceeding ten percent of the annual turnover of the undertaking, as may be decided in the circumstances of the case by the Commission; or

(b) for non-compliance of any order, notice or requisition of the Commission an amount not exceeding one million rupees, as may be decided in the circumstances of the case by the Commission; and

(c) for clause (e) in sub-section (1), an amount not exceeding one million rupees as may be decided in the circumstances of the case by the Commission.

(3) If the violation of the order of the Commission is a continuing one, the Commission may also direct the undertaking guilty of such violation shall pay by way of penalty a further sum which may extend to one million rupees for every day after the first such violation.

(4) Any penalty imposed under this Act shall be recoverable as provided in section 40.

(5) Notwithstanding anything contained in this Act or any other law for the time being in force, failure to comply with an order of the Commission shall constitute a criminal offence punishable with imprisonment for a term which may extend to one year or with fine which may extend to twenty five million rupees and the Commission may, in addition to, or in lieu of, the penalties prescribed in this Act, initiate proceedings in a Court of competent jurisdiction.

Section 39. Leniency

(l) The Commission may, if it is satisfied that any undertaking which is a party to a prohibited agreement and is alleged to have violated Chapter II prohibitions, has made a full and true disclosure in respect of the alleged violation, impose on such undertaking a lesser penalty as it may deem fit, than that provided in section 38.

(2) Any exemption from a penalty or imposition of a lesser penalty shall be made only in respect of an undertaking that is a party to a prohibited agreement which first made the full and true disclosure under this section.

(3) The Commission may, if it is satisfied that any undertaking which has been granted lenient treatment under sub-section (1) failed to comply with the conditions on which a lesser penalty was imposed had given false evidence, revoke the leniency provision and impose on the undertaking the penalty provided under section 38.

Section 40. Recovery of penalties

(1) For the recovery of any amount from an undertaking, the Commission may serve upon the concerned person or the chief executive or director of the said undertaking, a copy of a notice in the prescribed form requiring such person to pay the said amount within the time specified in the notice.

(2) If the amount referred to in the notice under sub-section (1) is not paid within the prescribed time, the Commission may proceed to recover the said amount from the person or undertaking in default in any one or more of the following manners, namely:__

(a) attachment of immovable or sale of any movable property, including bank account of the person or undertaking;

(b) appointment of a receiver for the management of the movable or immovable property of the person or undertaking;

(c) recovery of the amount as arrears of land revenue through the District Revenue Officer;

(d) require any of the following, by notice in writing, the person to deduct and pay the sum specified in the notice on or before such date as may be so specified, namely:__

(i) from whom any money is due or may become due to the undertaking;

(ii) who holds, or controls the receipt or disposal of or may subsequently hold, or control the receipt or disposal of, any money belonging to the undertaking or on account of the undertaking; or

(iii) who is responsible for the payment of any sum to the undertaking.

(3) Any bank, receiver, District Revenue Officer or undertaking who has paid any sum in compliance with a notice under sub-section (2) shall be deemed to have paid such sum to the Commission in respect of the undertaking, and the receipt of the Commission shall constitute a good and sufficient discharge of the liability of such bank, receiver, District Revenue Officer or undertaking to the extent of the sum referred to in such receipt.

(4) If any bank, receiver, District Revenue Officer or undertaking on whom a notice is served, fails to attach, receive, recover, deduct and pay, as the case may be, the amount specified in the said notice, such bank, receiver, District Revenue Officer or undertaking shall be treated as a defaulter and the amount specified in the said notice shall be recoverable from him or it, as the case may be, by the Commission in accordance with the provisions of this Act.

(5) The Commission may, by order, direct any bank, receiver, District Revenue Officer or undertaking which is a defaulter as referred to in sub-section (4), to pay by way of penalty, such sum as specified in the order, after giving to the bank, receiver, District Revenue Officer or undertaking an opportunity of being heard, it determines that such bank, receiver, District Revenue Officer or undertaking has wilfully failed to comply with the order of the Commission.

(6) For the purposes of the recovery of the amount under sub-section (2), the Commission shall have the same powers as a civil court has under the Code of Civil Procedure 1908 (Act V of 1908).

(7) The Commission may make rules regulating the procedure for the recovery of amounts under this section and any other matters connected with or incidental to the operation of this section.

(8) All penalties and fines recovered under this Act shall be credited to the Public Account of the Federation.

Section 41. Appeal to the Appellate Bench of the Commission

(1) An appeal shall lie to an Appellate Bench of the Commission in respect of an order made by any Member or authorized officer of the Commission. The person aggrieved by such order may, within thirty days of the passing of the order submit an appeal, to the Appellate Bench of the Commission.

(2) The Commission shall constitute Appellate Benches comprising not less than two Members to hear appeals under sub-section (1).

(3) The decisions of the Appellate Bench shall be made unanimously or by a majority of votes if the Appellate Bench comprises of more than two members. In the event of a split verdict, the original order appealed against shall hold and have effect as the final order of the Commission.

(4) No Member shall be included in an Appellate Bench who has participated or been involved in the decision being appealed against.

(5) The form in which an appeal is to be filed and the fees to be paid therefore and other related matters shall be prescribed by rules.

Section 42. Appeal to the Court

Any person aggrieved by an order of the Commission comprising two or more Members or of the Appellate Bench of the Commission may within sixty days of the communication of the order, prefer appeal to the Competition Appellate Tribunal.

Section 43. Competition Appellate Tribunal

(1) As soon as may be within thirty days of he commencement of this Act, the Federal Government shall constitute the Competition Appellate Tribunal which shall consist of a Chairperson who shall be a person who has been a judge of the Supreme Court or is a retired Chief Justice of a High Court and two technical members who shall be persons of ability, integrity and have special knowledge and professional experience of not less than ten years in international trade, economics, law, finance and accountancy.

(2) The Chairperson and members shall hold office for a period of three years and shall be eligible for reappointment for a similar term and shall cease to hold office on attaining the age of sixty-eight years or the expiry of the term whichever is earlier.

(3) The Chairperson and the members shall be entitled to such salary and other terms and conditions of service as the Federal Government may by rules prescribe.

(4) The Competition Appellate Tribunal may, in consultation with the Federal Government, make rules governing procedure in proceedings before the Tribunal.

(5) The Competition Appellate Tribunal shall decide an appeal expeditiously within six months of its presentation to the Tribunal.

Section 44. Appeal to Supreme Court

Any person aggrieved by an order of the Competition Appellate Tribunal may prefer an appeal to Supreme Court within sixty days. CHAPTER-VI GENERAL

Section 45. Common seal

(l) The Commission shall have a common seal which shall be kept in the custody of the Chairman or such other person as may be authorized by the Chairman by regulations made by the Commission.

(2) Documents required or permitted to be executed under the seal shall be specified and authenticated in such manner as shall be authorized by regulations.

Section 46. Service of notices and other documents

For the purpose of this Act any notice, requisition, letter or order required to be served on an undertaking shall be treated as properly served on the undertaking, if such service is made in the manner prescribed for the service of a summons under the Code of Civil Procedure, 1908 (V of 1908) or as may be prescribed by the Commission.

Section 47. Compensation

(1) No undertaking shall be entitled to or be paid any compensation or damages by the Commission for any loss or injury suffered on account of the termination of any agreement or employment or the divestment of any share or property or any other action taken in pursuance of any order made under this Act.

(2) Nothing in sub-section (1) shall prevent an undertaking from recovering compensation or damages from any other party for any loss or injury suffered on account of the termination of any agreement or employment or the divestment of any share or property or any other action taken in pursuance of any order made under this Act.

Section 48. Indemnity

Subject to sub-section (3) of section 35 no suit, prosecution or other legal proceeding shall lie against the commission or any Member, officer or servant of the Commission for anything in good faith done or intended to be done under this Act or any regulations or order made thereunder.

Section 49. Agreement for exchange of information

The Commission may, with approval of the Federal Government, enter into agreement with competition agencies in any part of the world for the exchange and assistance in performance of its function under this Act.

Section 50. Sharing and supply of information

In order that information relevant to the performance of its functions is available to the Commission and for carrying out the purposes of this Act,___

(a) all offices and agencies of the Federal Government and Provincial Government shall supply free of cost or charges information requested by the Commission in the discharge of its functions under this Act; and

(b) the State Bank of Pakistan, Security and Exchange Commission of Pakistan, the Central board of Revenue, the Federal Bureau of Statistics and all regulatory authorities shall arrange to provide requisite information as permissible under their own laws to the Commission, from time to time, at its request in the discharge of its functions under this Act.

Section 51. Obligation of confidentiality

(1) Subject to this section, any person who is or was at any time,___

(a) acting as a Member of the Commission, or

(b) engaged as an officer or employee of the Commission, or

(c) authorized to perform or exercise any function or power of the Commission or any function or power on behalf of the Commission or to render services to the Commission in the capacity of a consultant or adviser;

shall not, except to the extent necessary to perform his official duties, or in the performance or exercise of such a function or power, either directly or indirectly, make a record of, or disclose to any person, any information that is or was acquired by him because of having been so appointed, engaged or authorized, or make use of any such information, for any purpose other than the performance of his official duties or the performance or exercise of that function or power.

(2) Any person who contravenes sub-section (1) shall be guilty of an offence which shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one million rupees or with both.

(3) The Commission shall take all reasonable measures to protect from unauthorized use or disclosure of the information given to it in confidence in connection with the performance of its functions or the exercise of its powers.

(4) For the purpose of sub-section (1) the disclosure of information as required or permitted by any law for the time being in force in Pakistan or any other jurisdiction shall be taken to be authorized use and disclosure of the information.

(5) For the purposes of sub-section (1), the disclosure of information by a person for the purposes of:__

(a) performing his functions as,____

(i) a Member or employee of the Commission;

(ii) an officer, or employee or who is authorized to perform or exercise a function or power of, or on behalf of, the Commission; or

(b) the performance of functions or service by the person by way of assisting a Member or an officer of the Commission,

shall be taken to be authorized use and disclosure of the information.

(6) Where the Chairman is satisfied that any particular information,___

(a) may enable or assist the Commission to perform or exercise any of its functions or powers;

(b) may enable or assist the Federal Government, or an agency of the Federal Government to perform a function or exercise a power; or

(c) may enable or assist the Federal Government, an agency of the Federal Government, or of a foreign country to perform a function, or exercise a power, conferred by a law in force in that foreign country, the disclosure of the information to such persons by a person whom the Chairman authorizes for the purpose shall be taken to be authorized use and disclosure of the information.

(7) The Chairman may impose conditions to be complied with in relation to information disclosed under sub-section (6).

(8) The Chairman may delegate all or any of his functions and powers under sub-sections (6) and (7) to a Member or an officer of the Commission.

(9) Nothing in any of sub-sections (4), (5), (7) and (8) shall limit what may otherwise constitute, for the purposes of sub-section (1), authorized use or disclosure of information.

Section 52. Permitted disclosure

Nothing in section 49 shall preclude a person from,__

(a) producing a document to a court in the course of criminal proceedings or in the course of any proceedings under this Act, the Act or any other law for the time being in force;

(b) disclosing to a court in the course of any proceedings referred to in clause (a) any matter or thing, that came under his or her notice in the performance of his or her official duties or in the performance of a function or the exercise of a power referred to in that section;

(c) producing a document or disclosing information to a person to whom, in the opinion of the Commission, it is in the public interest that the document be produced or the information be disclosed;

(d) producing a document or disclosing information that is required or permitted by any law for the time being in force in Pakistan or any other jurisdiction to be produced or disclosed, as the case may be; or

(e) producing a document or disclosing information to the Commission.

Section 53. Assistance and advice to the Commission

(1) The Commission may seek the assistance of any person, authority or agency for the performance of its functions under this Act.

(2) All officers of an agency and any person whose assistance has been sought by the Commission in the performance of its functions shall render such assistance to the extent it is within their power or capacity.

(3) Subject to sub-section (3) of section 35, no statement made by a person or authority in the course of giving evidence before the Commission or its staff shall use against him or subject such person or authority to civil or criminal proceedings except for prosecution of such person or authority for giving false evidence.

Section 54. Power to exempt

The Federal Government may, by notification in the official Gazette, exempt from the application of this Act or any provision thereof and for such period as it may specify in such notification,__

(a) any class of undertaking if such exemption is necessary in the interest of security of the State or public interest;

(b) any practice or agreement arising out of and in accordance with any obligation assumed by Pakistan under any treaty, agreement or convention with any other State or States; or

(c) any undertaking Which performs a sovereign function on behalf of the Federal Government or a Provincial Government.

Section 55. Act not to apply to trade unions

Nothing in the Act shall apply to trade unions or its member functioning in accordance with any law pertaining to trade unions for the time being in

force.

Section 56. Powers of the Federal Government to issue directives

The Federal Government may, as and when it considers necessary, issue policy directives to the Commission, not inconsistent with the provisions of this Act, and the Commission shall comply with such directives.

Section 57. Power to make rules

(1) Subject to sub-section (2), the Commission may, by notification in the official Gazette and with the approval of Federal Government, make rules for all or any of the matters in respect of which it is required to make rules or to carry out the purposes of this Act.

(2) The power to make rules conferred by this section, except for the first occasion, shall be subject to the condition of previous publication and before making any rules the draft thereof shall be published in the official Gazette for eliciting public opinion thereon within a period of not less than thirty days from the date of publication.

Section 58. Power to make regulations

(1) Subject to sub-section (2), the Commission may, by notification in the official Gazette, make such regulations as may be required to carry out the purposes of this Act.

(2) The power to make regulations conferred by this section, except for the first occasion, shall be subject to the condition of previous publication and before making any regulations the draft thereof shall be published in two newspapers of wide circulation for eliciting public opinion thereon within a period of not less than thirty days from the date of publication.

Section 59. Act to override other laws

The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

Section 60. Removal of difficulties

If any difficulty arises in giving effect to the provisions of this Act, the Commission may make such order, not inconsistent with the provisions of this Act, as may appear to it to be necessary for the purpose of removing the difficulty.

Section 61. Repeals and savings

On the commencement of this Act__

(a) the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 (V of 1970), hereinafter referred to as the repealed Act, shall stand repealed;

(b) the Monopoly Control Authority established under the repealed Act shall stand dissolved;

(c) all assets, rights, powers, authorities and privileges and property, movable and immovable, cash and bank balances, reserve funds, investments and all other interests and rights in, or arising out of such property and all debts, liabilities and obligations of whatever kind of the Monopoly Control Authority subsisting immediately before its dissolution shall stand transferred to and vest in the Competition Commission of Pakistan established under this Act;

(d) no officer, employee, servant, or any other person holding any post in connection with the affairs of the Monopoly Control Authority shall have any

right or lien to appointment to any post in the Competition Commission of Pakistan established under this Act;

(e) officers, employees, servants, or any other person holding any post in connection with the affairs of the Monopoly Control Authority, not considered for appointment in the Commission shall have the option to be discharged from service on payment of admissible relieving benefits, or alternatively, their services shall be placed at the disposal of the Finance Division for absorption on the terms and conditions to be determined by that Division but not less favorable than those which they were entitled to in Monopoly Control Authority, and unless sooner they are absorbed elsewhere they shall continue to draw their pay, allowances, privileges or other benefits from the Commission as they were drawing while holding their posts in the Authority;

(f) save as otherwise provided in clause (c), all the debts and obligations incurred or contracts entered into or rights acquired and all matters and things engaged to be done by, with or for the Monopoly Control Authority before the enforcement of this Act shall be deemed to have been incurred, entered into, acquired or engaged to be done by with or for the Commission, established under this Act, as the case may be; and

(g) all suits and other legal proceedings instituted by or against the Monopoly Control Authority before the commencement of this Act shall be deemed to be suits and proceedings by or against the Competition Commission of Pakistan as the case may be and may proceed and be dealt with accordingly.

Section 62. Validation of actions, etc

Anything done, actions taken, orders passed, instruments made, notifications issued, agreements made, proceedings initiated, processes or communication issued, power conferred, assumed or exercised, by the Commission or its officers on or after the 2nd October, 2007 and before the commencement of this Act, shall be deemed to have been validly done, made, issued, taken, initiated, conferred, assumed, and exercised and provisions of the Act shall have, and shall be deemed always to have had, effect accordingly.

________

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CONTENTS 
 
CHAPTER-I 
PRELIMINARY 
1. Short title, extent, application and commencement 
2. Definitions 
CHAPTER-II 
PROHIBITION OF ABUSE OF DOMINANT POSITION, CERTAIN AGREEMENTS, 
DECEPTIVE MARKETING PRACTICES AND APPROVAL OF MERGERS 
3. Abuse of dominant position 
4. Prohibited agreements 
5. Individual exemption 
6. Cancellation, etc., of individual exemptions 
7. Block exemption 
8. Block exemption procedure 
9. The criteria for individual and block exemptions 
10. Deceptive marketing practices 
11. Approval of mergers 
CHAPTER-III 
COMPETITION COMMISSION OF PAKISTAN 
12. Establishment of Commission 
13. Head Office 
 

 
Page 2 of 28 
 
14. Composition of Commission 
15. The Chairman 
16. The Acting Chairman 
17. Term of office 
18. Restriction on employment of the Chairman and other Members in certain cases 
19. Termination of appointment of Members 
20. Commission Fund 
21. Accounts and audits 
22. Annual report 
23. Appointments by Commission 
24. Meetings of Commission 
25. Disclosure of interest by Members 
26. Notification of interest by staff of Commission 
27. Officers and employees, etc., to be public servants 
CHAPTER-IV 
FUNCTIONS AND POWERS OF THE COMMISSION 
28. Functions and powers of the Commission 
29. Competition advocacy 
30. Proceedings in cases of contravention 
31. Orders of the Commission 
32. Power to issue interim orders 
33. Powers of the Commission in relation to a proceeding or enquiry 
34. Power to enter and search premises 
35. Forcible entry 
36. Power to call for information relating to undertaking 
37. Enquiry and studies 
CHAPTER-V 
PENALTIES AND APPEALS 
 
Page 3 of 28 
 
38. Penalty 
39. Leniency 
40. Recovery of penalties 
41. Appeal to the Appellate Bench of the Commission 
42. Appeal to the Court 
43. Competition Appellate Tribunal 
44. Appeal to Supreme Court 
CHAPTER-VI 
GENERAL 
45. Common Seal 
46. Service of notices and other documents 
47. Compensation 
48. Indemnity 
49. Agreement for exchange of information 
50. Sharing and supply of information 
51. Obligation of confidentiality 
52. Permitted disclosure 
53. Assistance and advice to the Commission 
54. Power to exempt 
55. Act not to apply to trade unions 
56. Powers of the Federal Government to issue directives 
57. Power to make rules 
58. Power to make regulations 
59. Act to override other laws 
60. Removal of difficulties 
61. Repeals and savings 
62. Validation of actions, etc.
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Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: 663455b5c05b02fa9b0e10aba00920709565978960878298fc15c280fef9e6f4.

Page 1 of 28 
 
 
 
THE COMPETITION ACT, 2010. 
   
 
 
 
 
 
 
CONTENTS 
 
CHAPTER-I 
PRELIMINARY 
1. Short title, extent, application and commencement 
2. Definitions 
CHAPTER-II 
PROHIBITION OF ABUSE OF DOMINANT POSITION, CERTAIN AGREEMENTS, 
DECEPTIVE MARKETING PRACTICES AND APPROVAL OF MERGERS 
3. Abuse of dominant position 
4. Prohibited agreements 
5. Individual exemption 
6. Cancellation, etc., of individual exemptions 
7. Block exemption 
8. Block exemption procedure 
9. The criteria for individual and block exemptions 
10. Deceptive marketing practices 
11. Approval of mergers 
CHAPTER-III 
COMPETITION COMMISSION OF PAKISTAN 
12. Establishment of Commission 
13. Head Office 
 

 
Page 2 of 28 
 
14. Composition of Commission 
15. The Chairman 
16. The Acting Chairman 
17. Term of office 
18. Restriction on employment of the Chairman and other Members in certain cases 
19. Termination of appointment of Members 
20. Commission Fund 
21. Accounts and audits 
22. Annual report 
23. Appointments by Commission 
24. Meetings of Commission 
25. Disclosure of interest by Members 
26. Notification of interest by staff of Commission 
27. Officers and employees, etc., to be public servants 
CHAPTER-IV 
FUNCTIONS AND POWERS OF THE COMMISSION 
28. Functions and powers of the Commission 
29. Competition advocacy 
30. Proceedings in cases of contravention 
31. Orders of the Commission 
32. Power to issue interim orders 
33. Powers of the Commission in relation to a proceeding or enquiry 
34. Power to enter and search premises 
35. Forcible entry 
36. Power to call for information relating to undertaking 
37. Enquiry and studies 
CHAPTER-V 
PENALTIES AND APPEALS 
 
Page 3 of 28 
 
38. Penalty 
39. Leniency 
40. Recovery of penalties 
41. Appeal to the Appellate Bench of the Commission 
42. Appeal to the Court 
43. Competition Appellate Tribunal 
44. Appeal to Supreme Court 
CHAPTER-VI 
GENERAL 
45. Common Seal 
46. Service of notices and other documents 
47. Compensation 
48. Indemnity 
49. Agreement for exchange of information 
50. Sharing and supply of information 
51. Obligation of confidentiality 
52. Permitted disclosure 
53. Assistance and advice to the Commission 
54. Power to exempt 
55. Act not to apply to trade unions 
56. Powers of the Federal Government to issue directives 
57. Power to make rules 
58. Power to make regulations 
59. Act to override other laws 
60. Removal of difficulties 
61. Repeals and savings 
62. Validation of actions, etc. 
 
Page 4 of 28 
 
THE COMPETITION ACT, 2010 
ACT NO. XIX OF 2010 
[6th October, 2010]  
An Act to provide for free competition in all spheres of commercial and economic activity to enhance 
economic efficiency and to protect consumers from anti competitive behavior. 
 WHEREAS it i s expedient to make provisions to ensure free competition in all spheres of 
commercial and economic activity to enhance economic efficiency and to prot ect consumers from 
anti-competitive behavior and to provide for the establishment of the Competition Comm ission of 
Pakistan to maintain and enhance competition; and for matters connected therewith or incidental 
thereto; 
 It is hereby enacted as follows:___ 
CHAPTER I 
PRELIMINARY 
 1. Short title, extent, appl ication and commencement. __ (1) This Act may be cal led the 
Competition Act, 2010. 
 (2) It extends to the whole of Pakistan. 
 (3) It shall apply to all undertakings and all actions or matters that take pla ce in Pakistan and 
distort competition within Pakistan. 
 (4) It shall come into force at once. 
 2. Definitions.__ (1) In this Act, unless there is anything repugnant in the subject or context;__  
(a)  “acquisition” means any change of control of an y undertaking by way of 
acquisition of Shares, assets or any other means; 
(b)  “agreement” includes any arra ngement, understanding or practice, whether or 
not it is in writing or intended to be legally enforceable; 
(c)  “Chairman” means the Chairman of the Commis sion and includes the Acting 
Chairman; 
(d)  “Commission” means the Competition Commission of Pakistan  established 
under section 12; 
(e)  “dominant position ” of one undertaking or several undertakings in  a relevant 
market shall be deemed to exist if such undertaking or undertakings  have the 
ability to behave to an appreciable extent independently of com petitors, 
customers, consumers and suppliers and the position of an undertaking shall 
be presumed to be dominant if its share of the relevant market exceed s forty 
percent; 
 
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(f)  “goods” includes any item, raw ma terial, product or by -product which is sold 
for consideration; 
(g)  “Member” means a member of the Commission; 
(h)  “merger” means the merger, acquisition, amalgamation, combination or 
joining of two or more undertakings or part thereof into an existing 
undertaking or to form a new undertaking; and e xpression “merge” means to 
merge, acquire, amalgamate, combine or join, as the context may require; 
(i)  “Minister” means the Federal Minister for Finance and in his absence, the 
Adviser to the Prime Minister on Finance; 
(j)  “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); 
(k)  “relevant market ” means the market which shall be determined by the 
Commission with reference to a product market and a geographic market and a 
product market comprises all those products or services which are regar ded as 
interchangeable or Substitutable by the consumers by reason of the products' 
characteristics, prices and intended uses. A geographic market comprise s the 
area in which the undertakings concerned are involv ed in the supply of 
products or services an d in which the conditions of competition are 
sufficiently homogeneous and which can be distinguished from neighboring 
geographic areas because, in particul ar, the conditions of competition are 
appreciably different in those areas; 
(l)  “retailer”, in relat ion to the sale of any goods, means a person who sells the 
goods to any other person other than for re-sale; 
(m)  “regulations” means the regulations made by the Commission under this Act; 
(n)  “rules” means the rules made by the Federal Government under this Act; 
(o)  “services” means a service of any description whether industrial, trade, 
professional or otherwise; 
(p)  “Tribunal” means Competition Appellate Tribunal under section 43 of the Act; 
(q)  “undertaking” means any natural or legal person, governmen tal body 
including a regulatory authority, body corporate, partnership, association, trust 
or other entity in any way engaged, directly or indirectly, in t he production, 
supply, distribution of goods or provision  or control of services and shall 
include an association of undertakings; and 
(r)  “wholesaler”, in relation to the sale of any goods, means a person who 
purchases goods and sells them to any other person for re-sale. 
 (2) The words and expressions used bu t not defined in this Act shall have the sam e meanings 
respectively assigned to them in the Ordinance. 
 
 
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CHAPTER II 
PROHIBITION OF ABUSE OF DOMINANT POSITION, CERTAIN AGREEMENTS, 
DECEPTIVE MARKETING PRACTICES AND APPROVAL OF MERGERS 
 3. Abuse of dominant position.__ (1) No person shall abuse dominant position. 
 (2) An abuse of dominant position shall be deemed to have been brought about, maintained or 
continued if it consists of practices which prevent,  restrict, reduce or distort competition in the 
relevant market. 
 (3) The expression “practices referred to in sub -section (2) shall include, but are not limited 
to___ 
(a)  limiting production, sales and unreasonable increases in price or other unfair 
trading conditions; 
(b)  price discrimination by charging di fferent prices for the same goods or 
services from different customers in the absence of objective justifications that 
may justify different prices; 
(c)  tie-ins, where the sale of goods or service i s made conditional on the purchase 
of other goods or services; 
(d)  making the conclusion of contrac ts subject to acceptance by the other parties 
of supplementary obligations which by their nature or according to 
commercial usage, have no connection with the subject of the contracts; 
(e)  applying dissimilar con ditions to equivalent transactions on other  parties, 
placing them at a competitive disadvantage; 
(f)  predatory pricing driving competitors out of a market, prevent new entry, and 
monopolize the market; 
(g)  boycotting or excluding any other undertaking fr om the production, 
distribution or sale of any goods or the provision of any service; or 
(h)  refusing to deal. 
 4. Prohibited agreements.__ (l) No undertaking or association of undertakings shall en ter 
into any agreement or, in the case of an association of undertakings, shall make a decision in respect 
of the production, supply, distribution, acquisition or control of goods or the provision of services 
which have the object or effect of preventing, restricting, or reducing competition within the relevant 
market unless exempted under section 5. 
 (2) Such agreements include, but are not limited to___ 
(a)  fixing the purchase or selling price or imposing any other restrictive trading 
conditions with regard to the sale or distribution of any goods or the provi sion 
of any service; 
 
Page 7 of 28 
 
(b)  dividing or sharing of markets for goods or services, whether by  territories, by 
volume of sales or purchases, by type of goods or services sold or by any other 
means; 
(c)  fixing or setting the quantity of production, distributio n or sale with regard to 
any goods or the manner or means of providing any services; 
(d)  limiting technical development or investment with regard to the production, 
distribution or sale of any goods or the provision of any service; or 
(e)  collusive tendering or bidding for sale, purchase or proc urement of any goods 
or services. 
(f)  applying dissimilar conditions to equivalent transactions with other trading 
parties, thereby placing them at a disadvantage; and 
(g)  make the conclusion of contracts subject  to acceptance by the other parties of 
supplementary obligations which, by their nature or according to commercial 
usage, have no connection with the subject of such contracts. 
 (3) Any agreement ent ered into in contravention of the provision in sub -section (1) shall be 
void. 
  5. Individual exempt ion.___ (1) The Commission may grant an exemption from section 4  
with respect to a particular practice or agreement, if a request for an exemption has been  made to it 
by a party to the agreement or practice and the agreement is one to which section 9 applies. 
 (2) The exemption under sub-section (1) may be granted subject to such conditions as the 
Commission considers it appropriate to impose and has effect for such period as the Commission 
considers appropriate. 
 (3) That period must be specified in the grant of the exemption. 
 (4) An individual exemption may be granted so as to have effect from a date earlier than that 
on which it is granted. 
 (5) On an app lication made in such a way as may be specified by  the rules mad e u nder 
section 55, the Commission may extend the period for which an exemption has effect; but, if the 
rules so provide, the Commission may do so only in specified circumstances. 
  6. Cancellation, etc., of individual exemptions. __ (1) If the Commis sion h as reasonable 
grounds for believing that  there has been a material change of circumstances since it granted an 
individual exemption, it may by notice in writing__ 
(a)  cancel the exemption; 
(b)  vary or remove any condition or obligation; or 
(c)  impose one or more additional conditions or obligations. 
 (2) If the Commission has reasonable suspicion that the information on which it based its 
decision to grant an individual exemption was incomplete, f alse or misleading in a material 
 
Page 8 of 28 
 
particular, the Commission may by notice in writing take any of the steps mentioned in sub -section 
(1). 
 (3) Breach of a condition has the effect of cancelling the exemption. 
 (4) Failure to comply with an obligation allows the Commission, by notice in writing to take 
any of the steps mentioned in sub-section (1). 
 (5) The Commission may act under this section on its own initiative or on complaint made by 
any person. 
  7. Block exemption .__ (1) If agreements which fall withi n a particular category of 
agreements are, in the op inion of the Commission, likely to be agreem ents to which section 9 
applies, the Commission may make a block exemption order giving exemption to such agreements. 
 (2) A block exemption order may impose co nditions or obligations subject to which a block 
exemption is to have effect. 
 (3) A block exemption order may provide__ 
(a)  that breach of a condition imposed by the order has the effect of canceling the 
block exemption in respect of an agreement; 
(b)  that if there is a failure to comply with an obligati on imposed by the order, the 
Commission may, by notice in writing, cancel the block exemption in respect 
of the agreement; 
(c)  that if the Commission considers that a particular agreement is not one to 
which section 9 applies, the Commission may cancel th e block exemption in 
respect of that agreement. 
 (4) A block exemption order may provide that the order is to cease to have effect at the end of 
a period specified in the block exemption order. 
  8. Block exemption  procedure.__ (1) Before making a block ex emption o rder, the 
Commission must__ 
(a)  publish details of its proposed order in such a way as the Commission thinks 
most suitable for bringing it to the attention of those likely to be affected; and 
(b)  consider any representations about it which are made to the Commission. 
 (2) A block exemption order may provide for a block exemption to have effect from a 
date earlier than that on which the order is made. 
  9. The criteria for individual and blo ck exemptions .__ (1) The Commission may grant 
individual or block exemption in respect of an agreement, which substantially contributes to___ 
(a)  improving production or distribution; 
(b)  promoting technical or economic progress, while allowing consumers  a fair 
share of the resulting benefit; or 
 
Page 9 of 28 
 
(c)  the benefits of that clearly outweigh the adverse effect of absence or lessening 
of competition. 
 (2) The onus of claiming an exemption under this Act shall lie on the undertaking seeking 
exemption. 
  10. Deceptive marketing practices. __ (1) No undertaking shall e nter i nto deceptive 
marketing practices. 
 (2) The deceptive marketing practices shall be deemed to have been resorted to or continued 
of an Undertaking resorts to__ 
(a)  the distribution of false or misleading information that is capable of harming 
the business interests of another undertaking; 
(b)  the distribution of false or misleading information to consumers, including the 
distribution of information lacking a reasonable basis, related to the price, 
character, method or place of production, properties,  suitability for use, or 
quality of goods; 
(c)  false or misleading comparison of goods in the process of advertising; or 
(d)  fraudulent use of another's trademark, firm name, or product labeling  or 
packaging. 
 11. Approval of mergers.__ (1) No undertaking shall enter into a merger whi ch substantially 
lessens competition by creating or strengthening a dominant position in the relevant market. 
 (2) Notwithstanding the provisions contained in the Ac t where an undertaking, intends to 
acquire the shares or ass ets of another undertaking, or two or more undertakings intend to merge the 
whole or part of their businesses, and meet the pre -merger notification thresholds  stipulated in 
regulations prescribed  by the Commission, such undertaking or undertakings shall a pply for 
clearance from the Commission of the intended merger. 
 (3) The concerned undertakings shall submit a pre -merger application to the Commission as 
soon as they agree in principle or sign a non-binding letter of intent to proceed with the merger. 
 (4) Application referred to in su b-section (3) shall be in the form and accompanied by a 
processing fee as may be prescribed by the Commission. The concerned undertakings shall not 
proceed with the intended merger until they have received clearance from the Commission. 
 (5) The Commission shall by way of an order reffered to in section 31, decide on whether the 
intended merger meets the thresholds and the presumption of dominance as determined in sectio n 3. 
Such order shall be made within thirty days of receipt of the application. 
 (6) If so determined, the Commission shall initiate a second phase review and for that 
purpose the Commission may require the concerned undertakings to provide such informatio n as it 
considers necessary to enable the Commission to make the necessary determination. 
 (7) Failure to make a determination within the prescribed period of thirty days for the first 
phase review shall mean that the Commission has no objection to the intended merger. 
 
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 (8) On initiation of the second phase review  the Commission shall, within n inety days of 
receipt of the requested information under sub-section (6), review the merger to assess whether it 
substantially lessens competition by creating or stre ngthening a dominant position in the relevant 
market, and shall give its decision on the proposed transaction. In case concerned undertakings fail to 
provide the information requested, the Commission may reject the application. 
 (9) Failure to render a dec ision within ninety days shall be deemed to mean that the 
Commission has no objection to the intended merger. 
 (10) If after the second phase review  the Commission determines that the intended merger 
substantially lessens competition by creating or streng thening a dominant position, it may 
nonetheless approve the transaction, if it is shown that__ 
(a)  it contributes substantially to the efficiency of the production or distribution of 
goods or to the provision of services; 
(b)  such efficiency could not r easonably have been achieved by a less restrictive 
means of competition; 
(c)  the benefit s of such efficiency clearly outweigh the adverse effect of the 
absence or lessening of competition; or 
(d)  it is the least anti -competitive option for the failing un dertaking's assets, when 
one of the undertakings is faced with actual or imminent financial failure: 
  Provided that the burden of proof shall lie with the undertaking seeking the approval. 
 (11) In case the Commission determines that the transaction under review does not qualify 
the criteria specified in sub-section (10), the Commission may; 
(a)  prohibit the consummation of the transaction; 
(b)  approve such transaction subject to the conditions laid by the Commission in 
its order; 
(c)  approve such transaction on the condition that the said  undertakings enter into 
legally enforceable agreements specified by the Commission in its order. 
 (12) Where an undertaking has consummated the merger without complying with the 
provisions of sub -section (1) to su b-section (4), the Commission shall, after giving the unde rtaking 
an opportunity of being heard, make appropriate orders under section 31. 
 (13) Where the Commission has granted approval subject to conditions, the Commission 
may, within one year, review th e order of approval of merger on its own or on the applica tion of the 
undertakings concerned on the ground that it is satisfied that the circumstances of the relevant market 
or the undertakings have so changed as to warrant review of the conditions imposed. 
 (14) If the Commission determines that the approval wa s based o n false o r misleading 
information submitted by the undertaking, or the conditions prescribed in the relevant order  of the 
Commission have not been fully complied with, the Commission may a fter affording the 
undertakings concerned an opportunity of being heard___ 
 
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(a)  undo such merger or acquisition; or 
(b)  prescribe modifications or additions in the original order. 
CHAPTER III 
COMPETITION COMMISSION OF PAKISTAN 
 12. Establishment of Commis sion.___ (1) There is hereby established a Commission to b e 
called the Competition Commission of Pakistan. 
 (2) The Commission shall be a body corporate with perpetual succession and  common seal, 
and may sue and be sued in its own name and, subject to an d for the purpose of this Act, may enter 
into contracts and may acquire, purchase, take, hold and enjoy moveable and immovable property of 
every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, 
transfer or otherwi se dispose of or deal with any mov eable or immovable proper ty or any interest 
vested in it, upon such terms as it deems fit. 
 (3) The Commission shall be administratively and functionally independent, and the Federal 
Government shall use its best efforts to  promote, enhance and maintain the independence of the 
Commission. 
  13. Head Office.__ The head office of the Commission shall be in Islamabad and the 
Commission may establish and close down offices at such other places in Pakistan as it considers 
necessary. 
 14. Composition of Commission. __ (1) The Commission s hall consist of not less tha n five 
and not more than seven members: 
 Provided that the Federal Government may increase or decrease the number of Members, 
from time to time, as it may consider appropriate. 
 (2) The Members shall be appointed by the Federal G overnment and fro m amongst t he 
Members of the Commission, the Federal Government shall appoint the Chairman. 
 (3) All Members of the Commission shall serve on a full-time basis. 
 (4) Not more than t wo Members of the Commission shall be employees of the Fed eral 
Government. 
 (5) No per son shall be recommended for appointment as a Member unless that person is 
known for his integrity, expertise, eminence and experience for not less than ten years in any relevant 
field including industry, commerce, economics, finance, law, accountancy or public administration: 
 Provided that the Federal Government may prescribe qualifications and experience and mode 
of appointment of such Members in such manner as it may prescribe. 
 (6) No person shall be appointed or continued as a Member if he__ 
(a)  has been convicted of an offence involving moral turpitude; 
(b)  has been or is adjudged insolvent; 
 
Page 12 of 28 
 
(c)  is incapable of discharging his duties by reason of physical, psycho logical or 
mental unfitness and has been so declared by a registered medical practitioner 
appointed by the Federal Government; 
(d)  absents himself from three consecutive meetings of the Commission, without 
obtaining leave of the Commission; 
(e)  fails to disclose any conflict of interest at or within the time pr ovided for such 
disclosure under this Act or contravenes any of the provisions of this Act 
pertaining to unauthorized disclosure of information; or 
(f)  deemed incapable of carrying out his responsibilities for any other reason. 
 (7) No act or proceeding o f the Comm ission shall be i nvalid by reason of absence of a 
member or existence of vacancy among its members or any defect in the constitution thereof. 
 (8) No Member or officer of the Commissio n shall assume his office until he has made such 
declaration affirming secrecy and fidelity. 
 15. The Chairman. __ (l) The Chairman shall be the chief executive of the Commission and 
shall, together with the other Members, be responsible for the administrat ion of the affairs of the 
Commission. 
 (2) The Chairman ma y subject t o such conditions as he may deem fit, from time to time 
delegate all or any of his powers and functions to any of the Members. 
 16. The Acting Chairman.__ At any time when the position of the Chairman is vacant, or the 
Chairman is unable to perform his functions due to any cause, the Federal Government shall appoint 
the most senior Member of the Commission to be the Acting Chairman of the Commission until the 
appointment of a Chairman on a regular basis. 
 17. Term of office.__ The Chairman and Members of the Commission shall be appointed for a 
term of three years on such salary, terms and conditions of service as the Federal Government may 
by rules prescribe: 
 Provided that the Chairman and  Members shall be eligible for re -appointment for such ter m 
or terms but shall cease to hold office on attaining the age of sixty -five years or the expiry of the 
term whichever is earlier. 
 18. Restriction on employment of the Chairman and other Members in  certain cases.__ 
The Chairman and other Members shall not , for a per iod of one year from the date on which they 
cease to hold office, accept any employment in, or connected with the management or administration 
of, any undertaking with has been a party to any investigation before the Commission under this Act. 
 19. Termination o f appoin tment of Members. __ (1) Subject to sub -section (2), the 
appointment of any Member or the Chairman may, at any time, be revoked and he may be removed 
from his office by orde r of the Federal Government if it is found that such perso n has becom e 
disqualified under sub-section (6) of section 14. 
 (2) Unless a disqualification referred to in section (1) arises from the judgment or order of a 
Court or tribunal of competent jurisdiction under any relevant provision of applicable law, a Member 
or the Chairman shall not be removed or his appointment revoked without an enquiry by an impartial 
 
Page 13 of 28 
 
person or body of persons constituted in accordance with such procedure as may be prescribed by  
rules made by the Federal Government and such rules shal l provide for a reasonable opportunity for 
the Member or the Chairman to be heard in defence. 
 (3) A Member or the Chairman may resign his office at any time by notice in writing 
addressed to the Federal Government. 
 (4) A vacancy in the Commission caused by the death, resignation or removal of any Member 
or the Chairman shall be filled by the Federal Government within thirty days of the occurrence of 
such vacancy. 
  20. Commission Fund. __ (l) There s hall be established a fund to be known as the “CCP 
Fund” which shall vest in the Commission and shall be utilized by the Commission to meet charges 
in connection with the functioning of the Commission including payment of salaries and other 
remuneration to the Chairman, Members, officers, officials, experts, advisers, and consultants of the 
Commission. 
 (2) The Fund shall consist of, 
(a)  allocations or grants by the Federal Government; 
(b)  charges and fees levied by the Commission; 
(c)  contributions from local and foreign donors or agencies with the approval o f 
the Federal Government; 
(d)  returns on investments and income from assets of the Commission; and 
(e)  all other sums which may in any manner become payable to or vested in the 
Commission; 
(f)  a p ercentage of the fees and charges levied by other regulat ory agencie s in 
Pakistan as prescribed by the Federal Government in consultation with the 
Commission and the percentage so prescribed shall not be varied to the 
disadvantage of the Commission. 
 (3) The Commission shall make regulations for incurring expend itures as well as investments 
from the Fund. 
 (4) The Commission may open and maintain accounts at such scheduled banks as it may from 
time to time determine. The Commission may with the approval of the Federal Government, open 
and maintain foreign currency accounts. 
 21. Accounts and audits. __ (1) The Commission shall cause proper accounts to be kept and 
shall as soon as practicable after the end of each financial year cause to be prepared for that f inancial 
year a statement of accounts of the Commission w hich shall include a balance sheet and an account 
of income and expenditure. 
 (2) Within sixty days after the end of each financial year, the annual financial statements of 
the Commission shall be au dited by the Auditor -General of Pakistan or by a firm of chartered 
accountants nominated by the Auditor-General of Pakistan. 
 
Page 14 of 28 
 
 (3) The auditors shall make a report to the commission upon the balance sheet and accounts 
and in such report they shall state whe ther in their opinion the balance sheet is a full and fai r balance 
sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct 
view of the affairs of the Commission and, in case they have called for any explanation or 
information from the Commission, whether it has been given and whether it is satisfactory. 
 22. Annual report. __ (1) Within ninety days from the end of each financial year, the 
Commission shall cause a report to be prepared on the activities of the Comm ission (including 
investigations, advocacy activities, en quiries and merger reviews made by the Commission) during 
that financial year. 
 (2) The Commission shall, within one hundred and twenty days of the end of each financial 
year send a copy of the annua l report of the Commission under sub -section (1) together with a copy 
of the statement of accounts of the Commission certified by the auditors and a copy of the auditors' 
report to the Federal Government which shall cause them to be published in the offici al Gazette and 
laid before both Houses of the Majlis-e-Shoora (Parliament) within two months of their receipt. 
 23. Appointments by Commission. __ (1) The Commission may appoint such officers, 
officials, experts, advisers and consultants as it considers nec essary to carry out such functions as 
may be prescribed by the Commission with such powers and on such terms and conditions as it may 
determine from time to time. 
 (2) The Commission may, by notification in the official Gazette, make regulations in respect 
of the terms and conditions of service of its employees. 
  24. Meetings of Commission.__ (1) Subject to this section, the Chairman may convene such 
meetings of the Commission at such times and places as he considers necessary for the efficient 
performance of the functions of the Commission. 
 (2) The Chairman sha ll preside at every meeting of the Commission, and in the absence 
of Chairman, the Members may elect a Member to preside at the meeting. 
 (3) At any meeting of the Commission the quorum shall be three Members. 
 (4) All questions arising at any meeting of t he Commissi on shall be determined by a 
majority of votes of the Members present and voting. 
 (5) In the event of an equality of votes, the Chairman shall have a casting vote. 
 (6) Subject to the prov isions of this Act, the Chairman may give directions rega rding the 
procedure to be followed at or in connection with any meeting of the Commission. 
  25. Disclosure of interest by Members. ___ (1) For the purpose of this and the next following 
section, a person shall be deemed to have an interest in a matter i f he has any interest, pecuniary or 
otherwise, in such matter which could reasonably be regarded as giving rise to a conflict between his 
duty to honestly perform his functions under this Act and such interest, so that his ability to consider 
and decide any question impartially or to give any advice without bias, may reasonably be regarded 
as impaired. 
 (2) A Member having any interest in any matter to be discussed or decided by the 
Commission shall, prior to any discussion of the matter, disclose in writing,  to the Commission, the 
fact of his interest and the nature thereof. 
 
Page 15 of 28 
 
 (3) A disclosure of interest under sub-section (2) shall be recorded in the minutes of the 
Commission, prior to any discussion of,  or decision on, the matter and, after the disclosure, t he 
Member:___ 
(a)  shall not, save in the cases provided in sub-sections (4) to (6), take part nor  be 
present in any deliberation or decision of the Commission; and 
(b)  shall be disregarded for the p urpose of constitution of a quorum of the 
Commission. 
 (4) If a Member is not the Chairman and the Chairman becomes aware that a Member has a 
conflict of interest, the Chairman shall:__ 
(a)  if the Chairman considers that the Member should not take part, o r continue to 
take part, as the case may require, in de termining t he matter, direct the 
Member accordingly; or 
(b)  in any other case, cause the Member's interest to be disclosed to the persons 
concerned in the matter including any person whose application  is pending 
decision or adjudication by the Commission,  the Member in respect of whom 
a direction has been given under clause (a) shall comply with the direction. 
 (5) If the Member is the Chairman, he shall disclose his interest to the persons concerned i n 
the matter including any person whose application is pending dec ision or adjudication by the 
Commission. 
 (6) Subject to sub-section (4), the Chairman or the Member who has any interest in any 
matter referred to in this section shall not take part, or con tinue to take part, as the case may require, 
in determining the m atter unless everyone concerned in it consents to the Chairman or, as the case 
may be, the Member so taking part. 
  26.  Notification of interest by staff of Commission. __ (1) Where a person w ho, in the 
course of___ 
(a)  performing a function, or exercising a power, as an officer of the Commission, 
(b)  performing functions or service as an employee, or 
(c)  performing a function or services in any capacity by way to assisting or 
advising the C ommission, or any officer of the Commission, is requir ed to 
consider a matter in which he has an interest, such person shall forthwith give 
to the Commission a written notice stating that he is required to consider the 
matter and has an interest in it and setting out particulars of the interest. 
 (2) The person referred to in sub-section (1) shall also declare his interest in accordance with 
the said sub-section whenever it is necessary to avoid the conflict of interest. 
  27. Officers and employees, etc., t o be public servants. __ The Chairman, Members, 
employees, experts, consultants and advisers of the Commission authorized to perform any function 
or exercise any power under this Act shall be deemed to be public servants within the meaning of 
section 21 of the Pakistan Penal Code, 1860 (Act XLV of 1860). 
 
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CHAPTER-IV 
FUNCTIONS AND POWERS OF THE COMMISSION 
 28. Functions and powers of the Commission. __ (1) The functions and powers of the 
Commission shall be___ 
(a)  to initiate proceedings in accordance with the procedures of this Act and make 
orders in cases of contravention of the provisions of the said Act; 
(b)  to conduct studies for promoting competition in all sectors of commercial 
economic activity; 
(c)  to conduct enquiries into the affairs of any underta king as may be necessary 
for the purposes of this Act; 
(d)  to give advice to undertakings asking for the same as to whether any action 
proposed to be taken by such undertakings is consistent with the provisions of 
this Act, rules or orders made thereunder; 
(e)  to engage in competition advocacy; and 
(f)  to take all other actions as may be necessary for carrying out the purposes of 
this Act. 
 (2) The Commission may, subject to such conditions as it may think fit to impose, 
delegate all or any of its functions and powers to any of its Members or officers as it deems fit. 
 29. Competition advocacy.__ The Commission shall promote competition through advocacy 
which, among others, shall include__ 
(a)  creating awareness and imparting training about competition issues and taking 
such other actions as may be necess ary for the  promotion of a competition 
culture; 
(b)  reviewing policy frameworks for fostering competition and making suitable 
recommendations for amendments to this Act and any other laws that affect 
competition in Pakistan to the Federal Government and P rovincial 
Governments; 
(c)  holding open hearings on any matter affecting the state of competition in 
Pakistan or affecting the country's commercial activities and expressing 
publicly an opinion with respect to the issues; and 
(d)  posting on its website a ll decision s m ade, inquiries under review and 
completed, merger guidelines, educational material and the like. 
  30. Proceedings in cases of contravention. __ (1) Where the Commission is satisfied  that 
there has been or is likely to be, a contravention of  any provision of Chapter II, it may make one or 
more of such orders specified in section 31 as it may deem appropriate. The Commission may also 
impose a penalty at rates prescribed in section 38, in all  cases of contravention of the provisions of 
Chapter II. 
 
Page 17 of 28 
 
 (2) Before making an order under sub-section (1), the Commission shall___ 
(a)  give notice of its intention to make such order stating the reasons therefore to 
such undertaking as may appear to it to be in contravention; and 
(b)  give the undertaking an opportun ity of being heard on such date as may be 
specified in the notice and of placing before the Commission facts and 
material in support of its contention: 
 Provided that in case the undertaking d oes not avail the opportunity of being heard, the 
Commission may decide the case ex parte. 
 (3) The Commission shall publish its Orders in the official Gazette, for the information of the 
public. 
 (4) An order made under sub -section (1) shall have effect n otwithstanding anything to the 
contrary contained in any other law for the time being in force or in any contract or memorandum or 
articles of association. 
 (5) Any order issued under this section shall include the reasons on which the order is based. 
 31.  Orders of the Commission.__ The Commission may in the case of___ 
(a)  an abuse of dominant position, require the undertaking concerned to take such 
actions specified in the order as may be necessary to restore competition and 
not to repeat the prohibitio ns specified in Chapter II or to engage in any other 
practice with similar effect; and 
(b)  prohibited agreements, annul the agreement or require the undertaking 
concerned to amend the agreement or related practice and not to repeat the 
prohibitions specif ied in section 4 or to enter into any other agreement  or 
engage in any other practice with a similar object or effect; or 
(c)  a deceptive marketing practice, require___ 
(i)  the undertaking concerned to take such actions specified in the order as 
may be necessary to restore the previous market conditions an d not to 
repeat the prohibitions specified in section 10; or 
(ii)  confiscation, forfeiture or destruction of any goods having hazardous 
or harmful effect. 
(d)  A merger, in addition to the provisions contained in section 11__ 
(i)  authorize the merger, possibly setting forth the conditions to which the 
acquisition is subject, as prescribed in regulations; 
(ii)  decide that it has doubts as to the compatibility of the merger with 
Chapter II, thereby opening a second phase review; or 
(iii)  undo or prohibit the merger,  but only as a conclusion of the second 
phase review. 
 
Page 18 of 28 
 
 32. Power to issue interim orders. __ (1) Where, during the course of any proceeding under 
section 30, the Commission is of opinion that the issuance of a final order in the proceedings is likely 
to take time and that, in the situation that exists or is likely to emerge, serious or irreparable damage 
may occur and an interim Order is necessary in the public interest, it may, after giving the  
undertaking concerned an opportunity of being heard,  by order, direct such undertaking to do or 
refrain from doing or continuing to do any act or thing specified in the order. 
 (2) An order made under sub-section (1) may, at any time, be reviewed, modifie d or 
cancelled by the Commission and, unless so canc elled, shall remain in force for such period as may 
be specified therein but not beyond the date of the final order made under section 31. 
 33. Powers of the Commission in relation to a proceeding or enquir y.__ (1) Th e 
Commission shall, for the purpose of a proceeding or  enquiry under this Act, have the same powers 
as are vested in a civil court under the Code of Civil Procedure, 1908 (Act V of 1908), while  trying a 
suit, in respect of the following matters, namely: 
(a)  summoning and enforcing the attendance of any witne ss and examining him 
on oath; 
(b)  discovery and production of any document or other material object producible 
as evidence; 
(c)  accept evidence on affidavits; 
(d)  requisitioning of any public record from any court or office; and 
(e)  issuing of a commission for the examination of any witness, document or both. 
 (2) Any proceeding before the Commission shall be deemed to be a judicial pr oceeding 
within the meaning of sections 193 and 228 of the Pakistan Penal Code (Act XLV of 1860), and the 
Commission shall be deemed to be civil court for the purposes of section 195 and Chapter XXXV of 
the code of Criminal Procedure, 1898 (Act V of 1898). 
 (3) The Commission may, for the purpose of a pro ceeding or enquiry under this Act, require 
any undertaking:  
(a)  to produce before, and to allow to be examined and kept by, an officer of the 
Commission specified in this behalf, any books, accounts,  or other documents 
in the custody or under the cont rol of the  undertaking so required, being 
documents relating to any mat ter the examination of which may be necessary 
for the purposes of this Act; and 
(b)  to furnish to an officer so specified such info rmation in its possession, relating 
to any matter as may be, necessary for the purpose of this Act. 
  34. Power to enter and  search premises. __ (1) Notwithstanding anything contained in any 
other law for the time being in force, the Commission for reasonab le grounds to be recorded in 
writing shall have the power to authorize any officer to enter and search any premises for the purpose 
of enforcing any provision of this Act. 
 (2) For the purpose of sub-section (1), the Commission__ 
 
Page 19 of 28 
 
(a)  shall have full and fr ee access to any premises, place, accounts, documen ts or 
computer; 
(b)  may stamp, or make an extract or copy of any accoun ts, documents or 
computer-stored information to which access is obtained under clause (a); 
(c)  may impound any accounts or documents  and retain them for as long as may 
be necessary for the purposes of the Act; 
(d)  may where a hard copy or computer disk of information stored on a computer 
is not made available, impound and retain the computer for as long as is 
necessary to copy the information required; and 
(e)  may make an inventory of any article found in any premises or place to which 
access is obtained under clause (a). 
 (3) Any officer of the Commission who seeks to exercise the right to enter and search 
premises shall be required to provide evidence of his authority to act on behalf of the Commission. 
 (4) The Commission may authorize any valuer to ente r any premises or place to inspect such 
accounts and documents as may be necessary to enable the valuer to make a valuation of an asset for 
the purpose of this Act. 
 (5) The occupie r of any pr emises or place to which access is sought under sub-section (1) 
shall provide all reasonable facilities and assistance to ensure the effective exercise of the right of 
access. 
 (6) Any accounts, documents or computer impounded and retained under  sub-section (2) and 
(3) shall be signed for by the Commission or an authorized officer. 
 (7) An undertaking whose accounts, documents or computer have been impounded and 
retained under sub-section (2) may e xamine them and make an extract or copy from the m during 
regular office hours under such supervision as the Commission may determine. 
 Explanation.__ In this section, the expression “Occupier”, in relation to any premises or place, 
includes the owner, manager or any other person found present on the premises or place. 
  35. Forcible entry.__ (l) In the event that an undertaking refuses without reasonable cause 
to allow the Commission to exercise the powers contained in section 34, an investigating officer of 
the Commission may by written order, signed b y any two M embers enter any place or building by 
force, if necessary. 
 (2) Notwithstanding anything contained in sub-section (1), no investigating officer of the 
Commission shall enter any premises by the use of force without a written order of the Commiss ion 
signed by two Members. 
 (3) If, on enquiry conducted in accordance with the rules it is found that the exercise by an 
investigating officer of his power under sub-section (2) was vexatious, excessive or wit h mala fide 
intent such officer shall be dismi ssed from s ervice, and shall be guilty of an offence and shall be 
liable on conviction to a fine which may extend to five hundred thousand rupees or to imprisonment 
for a term not exceeding one year or both. 
 
Page 20 of 28 
 
 (4) Whenever a criminal court imposes a fine un der sub-section (3) it shall, when passing 
judgment, order that a sum equal to the whole or any part of the fine recovered, be paid to the person 
on whose complaint the investigating officer was convicted, and i n case the fine is not recovered the 
sum shall be paid out of the Fund. 
 (5) Any sum paid under sub-section (4) shall be without prejudice to the right of the 
aggrieved person to avail any other remedies available to him under the law but at the time of 
awarding compensation in any subsequent proceed ings relating to the, same matter the court shall 
take into account any sum recovered from the convict and paid to the aggrieved person. 
 36. Power to call for information relating to undertaking. __ Notwithstanding anything 
contained in any other law for t he time bei ng in force, the Commission may, by general or  special 
order, cal l up on an undertaking to furnish periodically or as and when required any information 
concerning the activities of the undertaking, inc luding information relating to its organizat ion, 
accounts, business, trade practices, management and connection with any other undertaking, which 
the Commission may consider necessary or useful for the purposes of this Act. 
 37. Enquiry and studies.__ (1) The Commission may, on its own, and shall up on a reference 
made to it by the Federal Government, conduct enquiries into a ny matter relevant to the purposes of 
this Act. 
 (2) Where the Commission receives from an undertaking or a registered association of 
consumers a complaint in writing of such fact s as appea r to  constitute a contravention of the 
provisions of Chapter II, it  shall, unless it is of opinion that the application is frivolous or vexatious 
or based on insufficient facts, or is not substantiated by prima facie evidence, conduct an enquiry into 
the matter to which the complaint relates. 
 (3) The Commission may outsource studies by hiring consultants on contract. 
 (4) If upon the conclusion of an inquiry under sub-section (1) or sub-section (2), the 
Commission is of opinion that the findings are such that it is necessary in the public interest so to do, 
it shall initiate proceedings under section 30. 
CHAPTER-V 
PENALTIES AND APPEALS 
 38. Penalty.__ (1) The Commission may by order direct any undertakin g or any director, 
officer or employee of an undertaking, to pay by way of penalty such sum as may be specified in the 
order if, after giving the undertaking concerned an opportunity of being heard, it determines that 
such undertaking:___ 
(a)  has been found engaged in any activity prohibited under this Act; 
(b)  has failed to comply with an order of the Commission made under this Act; 
(c)  has failed to supply a copy of  the agreement or any other documents and 
information as required under this Act or requisitioned by the Commission; 
(d)  has furn ished any i nformation or made any statement to the Commission 
which such undertaking knows or has reason to believe to be false or found by 
the Commission to be inaccurate; or 
 
Page 21 of 28 
 
(e)  knowingly abuses, interferes with , impedes, imperils, or obstructs the proc ess 
of the Commission in any manner: 
 Provided that fair comments made in good faith and in the public interest on the working of 
the Commission or on any order of the Commission issued after the completion of any proceedings, 
shall not be subject to the imposition of a penalty. 
 (2) The Commission may impose penalties at the following rates, namely:___ 
(a)  for a contravention of any provision of Chapter II of th e Act, an amount not 
exceeding seventy-five million rupees or an amount not exceeding ten percent 
of the an nual turnover of the undertaking, as may be decided in the 
circumstances of the case by the Commission; or 
 (b)  for non-compliance of any order, notice or requisition of the Commission an 
amount not exc eeding one million rupees, as may be decid ed in the 
circumstances of the case by the Commission; and 
 (c)  for clause (e ) in sub-section (1), an amount not exceeding one million rupees 
as may be decided in the circumstances of the case by the Commission. 
 (3) If the violation of the order of the Commission is a continuing one, the Commission may 
also direct the undertaking guilty of such violation  shall pay by way of penalty a further sum which 
may extend to one million rupees for every day after the first such violation. 
 (4) Any penalty imposed under this Act shall be recoverable as provided in section 40. 
 (5) Notwithstanding anything contained in this Act or any other law for the time being in 
force, failure to comply with an order of the Commission sha ll constitute a criminal offence 
punishable with imp risonment for a term which may extend to one year or with fine which may 
extend to twenty five million rupees and the Commission may, in addition to, or in lieu of, the 
penalties prescribed in this Act, initiate proceedings in a Court of competent jurisdiction. 
 39. Leniency.__ (l) The Commission may, if it is satisfied tha t a ny undertaking which is a 
party to a prohibited agreement and is alleged to have violated Chapter II prohibitions, has made a 
full an d true disclosure in respect of the alleg ed violatio n, impose on such undertaking a lesser 
penalty as it may deem fit, than that provided in section 38. 
 (2) Any exemption from a penalty or imposition of a lesser penalty shall be made only in 
respect of an undertaking that is a party to a prohibi ted agreement which first made the full and true 
disclosure under this section. 
 (3) The Commission may , if it is satisfied that any undertaking which has been granted 
lenient treatment under sub-section (1) failed to comply with the conditions on which a lesser penalty 
was imposed had given false evidence, revoke the leniency provis ion and impose on the undertaking 
the penalty provided under section 38. 
 40. Recovery of penalties. __ (1) For the recovery of any amount from an undertaking, the 
Commission may serve upon the concerned person or the chief executive or director of the said  
undertaking, a copy of a notice in the prescribed form requiring such person to pay the said amount 
within the time specified in the notice. 
 
Page 22 of 28 
 
 (2) If the amount referred to in th e notice un der sub-section (1) is not paid within the 
prescribed time, the Com mission may proceed to recover the said amount from the person or 
undertaking in default in any one or more of the following manners, namely:__ 
(a)  attachment of immovable or sal e of any mo vable property, including bank 
account of the person or undertaking; 
(b)  appointment of a receiver for the management of the movable or immovable 
property of the person or undertaking; 
(c)  recovery of t he amount as arrears of land revenue th rough the D istrict 
Revenue Officer; 
(d)  require any of the following, by notice in writing, the person to deduct and pay 
the sum specified in the notice on or before such date as may be so specified, 
namely:__ 
(i)  from whom any money is due or may become due to the undertaking; 
 (ii)  who holds, or controls the receipt or disposal o f or may subsequently 
hold, or control the receipt or disposal of, any money belonging to the 
undertaking or on account of the undertaking; or 
(iii)  who is responsible for the payment of any sum to the undertaking. 
 (3) Any bank, receiver, District Revenu e Officer or undertaking who has paid any sum in 
compliance with a notice under sub-section (2) shall be deemed to have paid such sum to the 
Commission in respect of the undertaking,  and the receipt of the Commission shall constitute a good 
and sufficient discharge of the liability of such bank, receiver, District Revenue Officer or 
undertaking to the extent of the sum referred to in such receipt. 
 (4) If any bank, receiver, District Revenue Officer or undertaking on whom a notice is served, 
fails to attach, receive, recover, deduct and pay, as the case may be, the amount specified in the said 
notice, such bank, receiver, District Revenue Officer o r undertaking shall be treated as a de faulter 
and the amount specified in the said notice shall be recoverable f rom him or it, as the case may be, 
by the Commission in accordance with the provisions of this Act. 
 (5) The Commission may, by order, direct an y bank, receiver, District Revenue Off icer or 
undertaking which is a defaulter as referred to in sub-section (4), to pay by way of penalty, such sum 
as specified in the order, after giving to the bank, receiver, District Revenue Officer or undertaking 
an op portunity of being heard, it determin es that suc h bank,  receiver, District Revenue Officer or 
undertaking has wilfully failed to comply with the order of the Commission. 
 (6) For the purposes of the recovery of the amount under sub-section (2), the Commission 
shall have the same powers as a civil court has under the Code of Civil Procedure 1908 (Act V of 
1908). 
 (7) The Commission may make rules regulating the procedure for the recovery of amounts 
under this section and any other matters connected with or incidental to the operation of this section. 
 (8) All penalties and fines recovered under this Act shall be cred ited to the Public Account of 
the Federation. 
 
Page 23 of 28 
 
 41. Appeal to the Appellate Bench of the Commission. __ (1) An appeal shall lie to an 
Appellate Bench  of the Commission in respect of an order made by any M ember or authorized 
officer of the Commission. The per son aggrieved by such order may, within thirty days of the 
passing of the order submit an appeal, to the Appellate Bench of the Commission. 
 (2) The Commission shall constitute Appell ate Benches  comprising not less than two 
Members to hear appeals under sub-section (1). 
 (3) The decisions of the Appellate Bench shall be made unanimously or by a majority of 
votes if the Appellate Bench comprises of more than two members. In the event of a split verdict, the 
original order appealed against shall hold and have effect as the final order of the Commission. 
 (4) No Member shall be included in an Appellate Bench who has participated or been 
involved in the decision being appealed against. 
 (5) The form in w hich an appeal is to be filed and the fees to be paid th erefore and other 
related matters shall be prescribed by rules. 
 42. Appeal to the Court.__ Any person aggrieved by an order of the Commission co mprising 
two or more Members or of the Appellate Bench of the Commission may within sixty days of the 
communication of the order, prefer appeal to the Competition Appellate Tribunal. 
 43. Competition Appellate Tribunal. __ (1) As soon as may be within thirt y days of he 
commencement of this A ct, the Fed eral Gove rnment shall constitute the Competition Appellate 
Tribunal which shall consist of a Chairperson who shall be a person who has been a judge of the 
Supreme Court or is a retired Chief Justice of a High C ourt and two technical members who shall be 
persons of ability, integrity and have special knowledge and profes sional experience of not less than 
ten years in international trade, economics, law, finance and accountancy. 
 (2) The Chairperson and members sh all hold office for a period of thr ee years an d shall b e 
eligible for reappointment for a similar term and shal l cease to hold office on attaining the age of 
sixty-eight years or the expiry of the term whichever is earlier. 
 (3) The Chairperson and the mem bers shall be entitled to such sala ry and othe r terms a nd 
conditions of service as the Federal Government may by rules prescribe. 
 (4) The Competition Appellate Tribunal may, in consultation with the Federal Government, 
make rules governing procedure in proceedings before the Tribunal. 
 (5) The Compet ition App ellate Tribunal shall decide an appeal expeditiously wit hin six 
months of its presentation to the Tribunal. 
  44. Appeal to Supreme Court. __ Any person aggrieved by an order of the Competition 
Appellate Tribunal may prefer an appeal to Supreme Court within sixty days. 
CHAPTER-VI 
GENERAL 
 45. Common seal.__ (l) The Commission shall have a common seal which shall be kept in the 
custody of the Chairman or such other person as may be authorized by the Chair man by regulations 
made by the Commission. 
 
Page 24 of 28 
 
 (2) Documents required or permitted to be executed under the seal s hall be  specified and 
authenticated in such manner as shall be authorized by regulations. 
  46. Service of notices and other documents. __ For the  purpose of this Act any notice, 
requisition, letter or order required to be served on an undertaking shall be treated as properly served 
on the undertaking, if such service is made in the manner prescribed for the service of a summons 
under the Code of Civil Procedure, 1908 (V of 1908) or as may be prescribed by the Commission.  
 47. Compensation.__ (1) No undertaking shall be entitled to or be paid any compensation or 
damages by the Commission for any loss or injury suffered on account of the termination of any 
agreement or employment or the dives tment of an y share or property or any other action taken in 
pursuance of any order made under this Act. 
 (2) Nothing in sub-section (1) shall prevent an undertaking  from recovering compensation or 
damages from any oth er party for any loss or injury suffered o n account o f the t ermination of any 
agreement or employ ment or the d ivestment of any share or property or any oth er action taken in 
pursuance of any order made under this Act.  
 48. Indemnity.__ Subject to sub-section (3) of section 35 no suit, prosecution or other legal 
proceeding shall lie against the commission or any Member, officer or servant of the Commission for 
anything in good faith done or intended to be done under this Act or any regulations or order made 
thereunder. 
 49. Agreement for exchange of informa tion.__ The Commission may, with approval of the 
Federal Government, enter into agreement with competition agencies in any part of the world for the 
exchange and assistance in performance of its function under this Act. 
  50. Sharing and supply  of informa tion.__ In order that information relevant to the 
performance of its functions is available to the Commission and for carrying out the purposes of this 
Act,___ 
(a)  all offices and agencies of the Federal Governm ent and Provincial 
Government shall supply free of cost or charges  information requested by the 
Commission in the discharge of its functions under this Act; and 
(b)  the State Bank of Pakistan, Security and Exchange Commission of Pakistan, 
the Central board of Revenue, the Federal B ureau of Statistics  and all 
regulatory authorities shall arrange to provide requisite information as 
permissible under their own laws to the Commission, from time to time, at its 
request in the discharge of its functions under this Act. 
 51. Obligation of confidentiality.___ (1) Subject to this section, any person who is or was at  
any time,___ 
(a)  acting as a Member of the Commission, or 
(b)  engaged as an officer or employee of the Commission, or 
(c)  authorized to perform or exercise any function or p ower of the Commission or 
any function or power on behalf of the Commission or to render services to the 
Commission in the capacity of a consultant or adviser;  
 
Page 25 of 28 
 
shall not, except to the extent necessary to perform his official duties, or in the performance or  
exercise of such a function or power, either directly or indirectly, make a record of, or disclose to any 
person, any information that is or was acquired by him because of having been so appointed, 
engaged o r authorized, or make use of any such informatio n, for any purpose other than the  
performance of his official duties or the performance or exercise of that function or power. 
 (2) Any person who contravenes sub -section (1) shall be guilty of an offence which shall be 
punishable with imprisonment for a t erm which may extend to one year,  or with fi ne whic h may 
extend to one million rupees or with both. 
 (3) The Commission shall take all reasonable measures to protect from unauthorized use or 
disclosure of the information given to it in confidence in connec tion with the performance of its 
functions or the exercise of its powers. 
 (4) For the purpose of sub -section (1) the disclosure of information as required or permitted 
by any law for the time being in force in Pakistan or any other jurisdiction shall be t aken to be 
authorized use and disclosure of the information. 
 (5) For the pu rposes o f sub -section (1), the disclosure of information by a person for the 
purposes of:__ 
(a)  performing his functions as,____ 
(i)  a Member or employee of the Commission;  
(ii)  an officer, or employee or who  is authorized to perform or exercise a 
function or power of, or on behalf of, the Commission; or 
(b)  the performance of functions or service by the person by way of assisting a 
Member or an officer of the Commission, 
 shall be taken to be authorized use and disclosure of the information. 
 (6) Where the Chairman is satisfied that any particular information,___ 
(a)  may enable or assist the Commission to perform or exercise any of its 
functions or powers; 
(b)  may enable or as sist the Federal Government, or a n agency of  the Fe deral 
Government to perform a function or exercise a power; or 
(c)  may enable or assist the Federal Government, an agency of the Federal 
Government, or of a foreign country to perform a function, or exerc ise a 
power, conferred by a law in force in that foreign country,  
the disclosure of the information to such person s by a person whom the Chairman authorizes for the 
purpose shall be taken to be authorized use and disclosure of the information. 
 (7) The Chai rman may impose conditions to be complied wi th in r elation to information 
disclosed under sub-section (6). 
 
Page 26 of 28 
 
 (8) The Chairman may delegate all or any of his functions and powers under sub-sections (6) 
and (7) to a Member or an officer of the Commission. 
 (9) Nothing in any of sub-sections (4), (5), ( 7) and (8)  shall limit what may otherwise 
constitute, for the purposes of sub-section (1), authorized use or disclosure of information. 
  52. Permitted disclosure.__ Nothing in section 49 shall preclude a person from,__ 
(a)  producing a document  to a court in the cou rse of criminal proce edings or in 
the course of any proceedings under this Act, the Act or any other law for the 
time being in force; 
(b)  disclosing to a court in the course of any proceedings referred to  in clause (a) 
any matter or thing, that came under his or her notice in the performance of his 
or her official duties or in the performance of a function or the exercise of a 
power referred to in that section; 
 (c)  producing a document or disclosing info rmation to a person to whom,  in the 
opinion of the  Commission, it is in the p ublic interest that the document be 
produced or the information be disclosed; 
(d)  producing a document or disclosing information that is required or permitted 
by any law for the  time being in force in Pakis tan or any other jurisdiction to 
be produced or disclosed, as the case may be; or 
(e)  producing a document or disclosing information to the Commission. 
 53. Assistance and advice to the Commission. __ (1) The Commission may see k the 
assistance of any person, authority or agency for the performance of its functions under this Act. 
 (2) All officers of an agency and any person whose assistance has been sought by the 
Commission in the performance of its functions shall render such assistance to the extent it i s within 
their power or capacity. 
 (3) Subject to sub-section (3) of section 35, no statement made by a person or authority in the 
course of giving evidence before the Commission or its staff shall use against him or subject su ch 
person or authority to civ il or crimi nal proceed ings except for prosec ution of such person or 
authority for giving false evidence. 
 54. Power to exempt.__ The Federal Government may, by notification in the official Gazette, 
exempt from the application o f this Act or any provi sion thereo f and for s uch period as it may 
specify in such notification,__ 
(a)  any class of undertaking if such exemption is necessary in the interest of 
security of the State or public interest; 
(b)  any practice or agreement arising out of and in accordance with any obligation 
assumed by Pakistan under any treaty, agreement or convention with any other 
State or States; or 
(c)  any undertaking Which performs a sovereign function on behalf of the Federal 
Government or a Provincial Government. 
 
Page 27 of 28 
 
 55. Act not to apply to trade unions.__ Nothing in the Act shall apply to trade unions or its 
member functioning in accordance with any law pertaining to trade unions for the time being in 
force. 
 56. Powers of the Federal Government to issue directives.__ The Federal Government may, 
as and when it considers necess ary, issue policy directives to the Commission, not inconsistent with 
the provisions of this Act, and the Commission shall comply with such directives. 
 57. Power to make rules. __ (1) Subject to sub-section (2), the Co mmission may , by 
notification in the o fficial Gazette and with the approval of Federal Government, make rules for all 
or any of the matters in respect of which it is required to make rules or to carry out the purpose s of 
this Act. 
 (2) The power to make rules conferred by this section, except for the first occasion, shall be 
subject to the condition of previous publication and before making any rules the draft thereof shall be 
published in the official Gazette for eliciti ng public opinion thereon wi thin a period of not le ss than 
thirty days from the date of publication. 
 58. Power to make regulations. __ (1) Subject to sub-section (2), the Commission  may, by 
notification in the official Gazette, make such regulations as ma y be required to carry out the 
purposes of this Act. 
 (2) The power to make reg ulations conferred by this section, except for the first occasion, 
shall be subject to the condition of previous publication and before making any regulations the draft 
thereof shall be published in two n ewspapers of wide circulation for eliciting public o pinion thereon 
within a period of not less than thirty days from the date of publication. 
 59. Act to override other laws. __ The provisions of this Act shall have effect 
notwithstanding anything to the contrary contained in any other law for the time being in force. 
 60. Removal of difficulties.__ If any difficulty arises in giving effect to the provisions of this 
Act, the Commission may make such order, not inconsistent wi th the provisions of this A ct, as may 
appear to it to be necessary for the purpose of removing the difficulty. 
 61. Repeals and savings.__ On the commencement of this Act__ 
(a)  the Monopolies and Restrictive Trade Practices (Control and Prevention) 
Ordinance, 1970 (V of 1970), her einafter referred to as the repealed Act, shall 
stand repealed; 
(b)  the Monopoly Control Authority established under the repealed Act shall stand 
dissolved; 
(c)  all assets, rights, powers, authorities and privileges and propert y, movable and 
immovable, cash and ban k balances, r eserve funds, investments and all o ther 
interests and rights in, or arising out of such property and all debts, liabilities 
and obligations of whatever kind of the Monopoly Control Authority 
subsisting immediately before its dissolution shall stand transferred to and vest 
in the Competition Commission of Pakistan established under this Act; 
(d)  no officer, employee, servant, or any other person holding any post in 
connection with the affairs of the Monopol y Control Authority shall h ave any 
 
Page 28 of 28 
 
right or lien to  appointment to any post in the Com petition Commission of 
Pakistan established under this Act; 
(e)  officers, employees, servants, or any other person holding any post in 
connection with the affairs of the Monopoly Control Authority, not considered 
for app ointment in the Commission shall ha ve the option to be discharged 
from service on payment of admissible relieving benefits , or alternatively, 
their services shall be placed at the disposal of the Finance Di vision for 
absorption on t he terms an d conditions to be determined by that Division b ut 
not less favorable than those which they were entitled to in Monopoly Control 
Authority, and unless sooner they are absorbed elsewhere  they shall continue 
to draw the ir pay, allowances, privile ges or othe r benefits fr om the 
Commission as they were drawing while holding their posts in the Authority; 
(f)  save as otherwise provided in clause (c), all the debts and obligations incurred 
or contracts entered into or rights acquired and all matters an d things engaged 
to be d one by, with or for the Monopoly Con trol Authority before the 
enforcement of this Act shall be deemed to have been incurred, entered into, 
acquired or engaged to be done by  with or for the Commission, est ablished 
under this Act, as the case may be; and 
(g)  all suits and other legal proceedi ngs i nstituted by or against the Monopoly 
Control Authority before the commencement of this Act shall be deemed to be 
suits and proceedings by or against the Comp etition Commission of Pakis tan 
as the case may be and may proceed and be dealt with accordingly. 
 62. Validation of actions, etc. __ Anything done, actions taken, orders passed, instruments 
made, notifications issued, agreements made, proceedings initiated,  processes or communication  
issued, power conferred, assumed or exercised, by the Commis sion or its officers on or after the 2nd 
October, 2007 and before the commencement of this Act, shall be deemed to have been validly done, 
made, issued, taken, initiate d, conferred, assumed, and exercised a nd provisions  of th e Act shall 
have, and shall be deemed always to have had, effect accordingly. 
 
 
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Chairman” means the Chairman of the Commis sion and includes the Acting Chairman; (d) “Commission” means the Competition Commission of Pakistan established under section 12; (e) “dominant position ” of one undertaking or several undertakings in a relevant market shall be deemed to exist if such undertaking or undertakings have the ability to behave to an appreciable extent independently of

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Section 5

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ods or the provision of services which have the object or effect of preventing, restricting, or reducing competition within the relevant market unless exempted under section 5. (2) Such agreements include, but are not limited to___ (a) fixing the purchase or selling price or imposing any other restrictive trading conditions with regard to the sale or distribution of any goods or the provi sion

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Section 4

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ment ent ered into in contravention of the provision in sub -section (1) shall be void. 5. Individual exempt ion.___ (1) The Commission may grant an exemption from section 4 with respect to a particular practice or agreement, if a request for an exemption has been made to it by a party to the agreement or practice and the agreement is one to which section 9 applies. (2) The exemption under s

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Section 9

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ect to a particular practice or agreement, if a request for an exemption has been made to it by a party to the agreement or practice and the agreement is one to which section 9 applies. (2) The exemption under sub-section (1) may be granted subject to such conditions as the Commission considers it appropriate to impose and has effect for such period as the Commission considers appropriate. (3)

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Section 55

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o as to have effect from a date earlier than that on which it is granted. (5) On an app lication made in such a way as may be specified by the rules mad e u nder section 55, the Commission may extend the period for which an exemption has effect; but, if the rules so provide, the Commission may do so only in specified circumstances. 6. Cancellation, etc., of individual exemptions. __ (1) If the

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Section 9

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Block exemption .__ (1) If agreements which fall withi n a particular category of agreements are, in the op inion of the Commission, likely to be agreem ents to which section 9 applies, the Commission may make a block exemption order giving exemption to such agreements. (2) A block exemption order may impose co nditions or obligations subject to which a block exemption is to have effect. (3) A

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Section 9

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by notice in writing, cancel the block exemption in respect of the agreement; (c) that if the Commission considers that a particular agreement is not one to which section 9 applies, the Commission may cancel th e block exemption in respect of that agreement. (4) A block exemption order may provide that the order is to cease to have effect at the end of a period specified in the block exemptio

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Section 31

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akings shall not proceed with the intended merger until they have received clearance from the Commission. (5) The Commission shall by way of an order reffered to in section 31, decide on whether the intended merger meets the thresholds and the presumption of dominance as determined in sectio n 3. Such order shall be made within thirty days of receipt of the application. (6) If so determined, the

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Section 31

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provisions of sub -section (1) to su b-section (4), the Commission shall, after giving the unde rtaking an opportunity of being heard, make appropriate orders under section 31. (13) Where the Commission has granted approval subject to conditions, the Commission may, within one year, review th e order of approval of merger on its own or on the applica tion of the undertakings concerned on the gro

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Section 14

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revoked and he may be removed from his office by orde r of the Federal Government if it is found that such perso n has becom e disqualified under sub-section (6) of section 14. (2) Unless a disqualification referred to in section (1) arises from the judgment or order of a Court or tribunal of competent jurisdiction under any relevant provision of applicable law, a Member or the Chairman shall no

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Section 31

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Commission is satisfied that there has been or is likely to be, a contravention of any provision of Chapter II, it may make one or more of such orders specified in section 31 as it may deem appropriate. The Commission may also impose a penalty at rates prescribed in section 38, in all cases of contravention of the provisions of Chapter II. Page 17 of 28 (2) Before making an order under

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Section 38

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hapter II, it may make one or more of such orders specified in section 31 as it may deem appropriate. The Commission may also impose a penalty at rates prescribed in section 38, in all cases of contravention of the provisions of Chapter II. Page 17 of 28 (2) Before making an order under sub-section (1), the Commission shall___ (a) give notice of its intention to make such order stating

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Section 4

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ited agreements, annul the agreement or require the undertaking concerned to amend the agreement or related practice and not to repeat the prohibitions specif ied in section 4 or to enter into any other agreement or engage in any other practice with a similar object or effect; or (c) a deceptive marketing practice, require___ (i) the undertaking concerned to take such actions specified in the

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Section 10

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concerned to take such actions specified in the order as may be necessary to restore the previous market conditions an d not to repeat the prohibitions specified in section 10; or (ii) confiscation, forfeiture or destruction of any goods having hazardous or harmful effect. (d) A merger, in addition to the provisions contained in section 11__ (i) authorize the merger, possibly setting forth t

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Section 11

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ion 10; or (ii) confiscation, forfeiture or destruction of any goods having hazardous or harmful effect. (d) A merger, in addition to the provisions contained in section 11__ (i) authorize the merger, possibly setting forth the conditions to which the acquisition is subject, as prescribed in regulations; (ii) decide that it has doubts as to the compatibility of the merger with Chapter II,

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Section 30

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only as a conclusion of the second phase review. Page 18 of 28 32. Power to issue interim orders. __ (1) Where, during the course of any proceeding under section 30, the Commission is of opinion that the issuance of a final order in the proceedings is likely to take time and that, in the situation that exists or is likely to emerge, serious or irreparable damage may occur and an interim

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Section 31

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ed by the Commission and, unless so canc elled, shall remain in force for such period as may be specified therein but not beyond the date of the final order made under section 31. 33. Powers of the Commission in relation to a proceeding or enquir y.__ (1) Th e Commission shall, for the purpose of a proceeding or enquiry under this Act, have the same powers as are vested in a civil court under the

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Section 195

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ing within the meaning of sections 193 and 228 of the Pakistan Penal Code (Act XLV of 1860), and the Commission shall be deemed to be civil court for the purposes of section 195 and Chapter XXXV of the code of Criminal Procedure, 1898 (Act V of 1898). (3) The Commission may, for the purpose of a pro ceeding or enquiry under this Act, require any undertaking: (a) to produce before, and to allow

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Section 34

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s or place. 35. Forcible entry.__ (l) In the event that an undertaking refuses without reasonable cause to allow the Commission to exercise the powers contained in section 34, an investigating officer of the Commission may by written order, signed b y any two M embers enter any place or building by force, if necessary. (2) Notwithstanding anything contained in sub-section (1), no investigating

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Section 30

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or sub-section (2), the Commission is of opinion that the findings are such that it is necessary in the public interest so to do, it shall initiate proceedings under section 30. CHAPTER-V PENALTIES AND APPEALS 38. Penalty.__ (1) The Commission may by order direct any undertakin g or any director, officer or employee of an undertaking, to pay by way of penalty such sum as may be specified in the

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Section 40

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sum which may extend to one million rupees for every day after the first such violation. (4) Any penalty imposed under this Act shall be recoverable as provided in section 40. (5) Notwithstanding anything contained in this Act or any other law for the time being in force, failure to comply with an order of the Commission sha ll constitute a criminal offence punishable with imp risonment for a t

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Section 38

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ns, has made a full an d true disclosure in respect of the alleg ed violatio n, impose on such undertaking a lesser penalty as it may deem fit, than that provided in section 38. (2) Any exemption from a penalty or imposition of a lesser penalty shall be made only in respect of an undertaking that is a party to a prohibi ted agreement which first made the full and true disclosure under this sectio

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Section 38

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he conditions on which a lesser penalty was imposed had given false evidence, revoke the leniency provis ion and impose on the undertaking the penalty provided under section 38. 40. Recovery of penalties. __ (1) For the recovery of any amount from an undertaking, the Commission may serve upon the concerned person or the chief executive or director of the said undertaking, a copy of a notice in t

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Section 35

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r the d ivestment of any share or property or any oth er action taken in pursuance of any order made under this Act. 48. Indemnity.__ Subject to sub-section (3) of section 35 no suit, prosecution or other legal proceeding shall lie against the commission or any Member, officer or servant of the Commission for anything in good faith done or intended to be done under this Act or any regulations or o

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Section 49

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shall limit what may otherwise constitute, for the purposes of sub-section (1), authorized use or disclosure of information. 52. Permitted disclosure.__ Nothing in section 49 shall preclude a person from,__ (a) producing a document to a court in the cou rse of criminal proce edings or in the course of any proceedings under this Act, the Act or any other law for the time being in force; (b)

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Section 35

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Commission in the performance of its functions shall render such assistance to the extent it i s within their power or capacity. (3) Subject to sub-section (3) of section 35, no statement made by a person or authority in the course of giving evidence before the Commission or its staff shall use against him or subject su ch person or authority to civ il or crimi nal proceed ings except for prosec

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Provisions explicitly cited in other instruments 1

Section 21 of Pakistan Penal Code, 1860

Cited by Competition Act, 2010

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ts and advisers of the Commission authorized to perform any function or exercise any power under this Act shall be deemed to be public servants within the meaning of section 21 of the Pakistan Penal Code, 1860 (Act XLV of 1860). Page 16 of 28 CHAPTER-IV FUNCTIONS AND POWERS OF THE COMMISSION 28. Functions and powers of the Commission. __ (1) The functions and powers of the Commission shall be___ (a) to initiate proc

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663455b5c05b02fa9b0e10aba00920709565978960878298fc15c280fef9e6f4
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26fa4eef08472c85ac0b784e4536c9a5fb94af8b1f51e562d3c533c57fe5e947
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Competition Act, 2010
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not independently verified
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Complete stored UTF-8 TXT file recovered byte-for-byte from owned Drive. Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.
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pk-code-590aee2977632520
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663455b5c05b02fa9b0e10aba00920709565978960878298fc15c280fef9e6f4

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