The CCP Bench comprising of Chairperson, Rahat Kaunain Hassan and Member (M&A) Vadiyya Khalil has imposed a plenty of Rs 10 million on DHA and Rs 5.0 million on Wateen Telecom for entering into a prohibited agreement, which is a violation of the provisions of the Competition Act, 2010.
Provisions of the agreement between DHA and Wateen, keeping in view the facts of the case, grant of exclusivity in respect of right of way and to dig soil, have been declared to be in violation of Section 4 and thus of no legal effect. Accordingly, grant of exemption in respect of such exclusivity has been denied.
The parties have been reprimanded that continuing the breach would entail serious consequences and the parties shall be liable to pay maximum penalty of Rs 1.0 million for every day of the continuing violation. CCP initiated proceedings on receipt of several complaints from the residents of DHA, Lahore, in respect of the lack of choice of service providers, other than Wateen, for unsatisfactory provision of telecommunication and media services. Information, provided by DHA and Wateen to the Commission, revealed that there was an exclusive arrangement between the parties whereby Wateen was the only service provider entitled to provide telecommunication and media services in certain phases of the property under the control of DHA.
Show Cause Notices were issued to DHA and Wateen, for prima facie contravention of Section 4 of the Competition Act, 2010, which prohibits undertakings from entering into agreements in respect of provision of services which have the object or effect of preventing, restricting or reducing competition within the relevant market unless exemption has been granted by the Commission.
