ISLAMABAD, 30 Aug: The Competition Commission of Pakistan (CCP) has successfully collected a PKR 5 million penalty from Wateen Telecom (Pvt.) Ltd. This action was taken under Section 40(2)(a) of the Competition Act, 2010, which allows the CCP to recover penalties by attaching the bank accounts of non-compliant entities.
The penalty was initially imposed following an inquiry sparked by multiple complaints from residents of Defence Housing Authority (DHA) Lahore. The residents reported issues with the lack of alternative service providers and the poor quality of services provided by Wateen Telecom.
The CCP’s investigation found that DHA Lahore and Wateen Telecom had entered into an exclusive agreement, giving Wateen Telecom sole rights to offer telecommunication and media services in certain phases of DHA Lahore. This arrangement was deemed a violation of Section 4 of the Competition Act, 2010, which prohibits agreements that restrict consumer choice.
On March 22, 2011, the CCP fined DHA Lahore PKR 10 million and Wateen Telecom PKR 5 million. DHA Lahore has already paid its portion of the fine.
Both parties contested the CCP’s decision by filing appeals with the Competition Appellate Tribunal (CAT). In July 2024, the CAT upheld the CCP’s penalties and dismissed the appeals.
Following this ruling, the CCP exercised its authority under Section 40(2)(a) of the Competition Act, 2010, to recover the outstanding penalty from Wateen Telecom.
