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The Competition Act, 2010

Act XIX of 2010 · 28 pages

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                          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 1 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 2 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 3 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 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

     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.

       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;

                                               Page 4 of 28
              (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.




                                           Page 5 of 28
                                           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 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.

       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;



                                             Page 6 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, 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.

       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.

       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

                                               Page 7 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 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.

     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.

       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

                                             Page 8 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 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.

        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.


                                            Page 9 of 28
        (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___


                                            Page 10 of 28
               (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 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.

       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 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;

                                            Page 11 of 28
               (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.

        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.

       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 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.

        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.

       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

                                            Page 12 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 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.

       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.

        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.


                                             Page 13 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 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.

        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.

        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.

       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.

        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.
                                             Page 14 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, 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.

       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.

        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).


                                             Page 15 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 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.

       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.

       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 16 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 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.

          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.

                                              Page 17 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, 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.

         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.

        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__


                                             Page 18 of 28
               (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.

         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.


                                            Page 19 of 28
      (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.

        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.

        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

        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
                                             Page 20 of 28
               (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.

        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.

        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 21 of 28
        (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.

                                            Page 22 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 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.

       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.

       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.

       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 Chairman by regulations
made by the Commission.

                                           Page 23 of 28
       (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.

        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 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.

       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 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.

        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.

       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;


                                            Page 24 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 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).



                                             Page 25 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 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.

        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.

       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.

                                            Page 26 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 necessary, 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 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.

        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.

       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 with the provisions of this Act, 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), 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
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                      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.

        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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Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.

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