The Competition Commission of Pakistan (CCP) has issued a show cause notice to Bahria Town for prima facie violation of Section 3 of the Competition Act, 2010 for abusing its dominant position by not allowing Nayatel to provide cable, internet and telephony (CIT) services in phase 1-6 of Bahria Town, Rawalpindi.
The CCP conducted an inquiry after receiving an email from a resident of Bahria Town Rawalpindi alleging that the management of Bahria Town had restricted consumer choice and competition in the market for CIT services by allowing only one service provider, PTCL, to operate in phase 1 – 6 of Bahria Town, Rawalpindi.
The inquiry report found that prima facie Bahria Town has a dominant position in the relevant market for grant of right of way for provision of CIT services in phase 1-6 of Bahria Town, Rawalpindi and that it had, prima facie, abused this dominance by not granting the right of way to Nayatel.
The report observed that this refusal was discriminatory and resulted in loss of choice for consumers and restriction of competition in the market. In terms of the show cause notice, Bahria Town has been provided opportunity of a hearing before a bench of the CCP on August 18 to explain its position.
It is pertinent to mention that Section 3 of the Competition Act, 2010 prohibits businesses with market power (dominant position) in the market from abusing it to, inter alia, exclude competitors, conduct business on unfair terms, discriminate among different trading partners, and refuse to deal.
