ISLAMABAD: The Competition Commission of Pakistan (CCP) has raided Pakistan Broadcasters Association’s (PBA) secretariat in Karachi to examine whether the Association is involved in violation of Section 4 of Competition Act, 2010.
The PBA strongly condemned the raid, terming it CCP’s ‘unfair’ attitude towards the association. The CCP exercised its powers under Section 34 of the Competition Act, 2010 to conduct the inspection after evaluating prima facie documentary evidence, including rules and regulations of PBA, suggesting that PBA may be in violation of Section 4 of the Competition Act by taking commercial decisions – such as setting the commission rates for advertising agencies and operating a central payment clearance system on behalf of its members – that may affect competition in the advertising industry.
Section 4 of the Competition Act prohibits decisions by an association of undertakings that may prevent, restrict, or reduce competition in the relevant market.
According to the press release issued here, the authorised officers of CCP conducted the inspection after fulfilling all legal formalities and with the complete cooperation of PBA officials. On arrival at PBA premises, the PBA officials were provided with a copy of the authorisation and the reasons for conducting the inspection. The premises were then inspected in the presence of PBA officials and an inventory list of the impounded record was provided to them. Opportunity was also given to PBA officials to make copies of urgently required documents. It is pertinent to mention that the inspection was carried out in a cooperative environment under Section 34 of the Competition Act instead of Section 35 which envisions use of force to enter and search the premises.
The inspection follows the initiation of a formal inquiry into the matter by CCP under Section 37 of the Competition Act.
In a statement, the PBA said that the CCP officials entered the premises of the Association’s secretariat and took away all the important original record and documents without assigning any reasonable grounds or by giving any prior information or warning.
“This action of the government is being taken as an attempt to suppress media and curb freedom of expression by using strong arm tactics and putting pressure on the parent electronic media body. This action of CCP is against the principles of natural justice as there is no prior notice to the association by the department.”
The PBA urged the prime minister to take immediate steps against the `arbitrary and highhanded action of the commission’.
