The Islamabad High Court (IHC) has delivered a major ruling affirming that the Competition Commission of Pakistan (CCP) has full authority to investigate deceptive marketing and anti-competitive practices in the telecom sector. The court dismissed petitions filed by major telecom operators, including Jazz, Telenor, Zong, Ufone, Warid, PTCL, and Wi-Tribe.
Justice Inaam Ameen Minhas, in a 19-page judgment, emphasized that the CCP acted within its powers under the Competition Act 2010 when it issued notices to telecom companies regarding misleading advertisements and hidden charges on prepaid customers.
The court clarified that the CCP’s authority spans all sectors of the economy, including telecommunications, and complements the role of the Pakistan Telecommunication Authority (PTA).
The telecom operators had challenged CCP show-cause notices issued between 2013 and 2014. The notices alleged that operators were charging hidden “service maintenance” or “recharge” fees on prepaid cards. PTCL and Wi-Tribe were also questioned for advertising “unlimited internet packages” that actually had usage limits.
In another instance, PTCL sought to block a CCP inquiry into alleged unfair pricing of its fixed local loop (FLL) services.
The companies argued that only the PTA could regulate competition in the telecom sector. The IHC rejected this, noting that the CCP has broader authority to act against unfair competition, abuse of dominance, collusion, and misleading marketing.
The judgment explained that the Telecommunication (Re-organization) Act 1996 and the Competition Act 2010 have complementary roles: the PTA oversees technical and operational matters, while the CCP handles competition and marketing issues.
Justice Minhas also highlighted that even regulatory bodies like the PTA fall under the CCP’s jurisdiction. The court noted that the show-cause notices are part of an inquiry, not final decisions, and that the telecom companies retain the right to appeal through the CCP or the Competition Appellate Tribunal.
The IHC concluded that any attempt to halt the CCP at this stage would undermine its legal duties, and dismissed all seven petitions as “not maintainable,” confirming the CCP’s authority to investigate deceptive and anti-competitive practices in the telecom industry.
