Pakistan Telecommunications Company Limited (PTCL) has landed itself in hot waters with Competition Commission of Pakistan (CCP) for ‘abusing’ its position.
Reportedly, PTCL has violated Section 3 of the Competition Act, 2010. A showcase notice had been issued to the leading telecom brand in 2012 after the conclusion of an inquiry on the complaint of Micronet Broadband Limited, LinkDotNet Telecom Limited, and Nexlinx Limited (Complainants).
CCP has also released an official press release to highlight that the brand has abused its dominant position in the sector for the provision of DSL services through unacceptable predatory pricing and refusal to deal.
The inquiry further determined that PTCL was restricting their competition via the practice of margin squeeze eventually forcing 5 of 11 competitors out of the market and discouraging new players who wished to enter the sector.
When issued the show-cause notice, PTCL filed a writ petition in the High Court challenging CCP’s jurisdiction. The Commission was suspended on 28th June 2012. Meanwhile, the brand reportedly remained successful in delaying the proceedings.
CCP will now proceed in the matter of show cause notice issued to PTCL for prima facie abuse of their dominant position. This will be the very first time that the Honorable High Court has allowed CCP to decide the maintainability of the proceedings pending before CCP.
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