IHC Clarifies PTA’s Role, Gives CCP Authority Over Anti-Competitive Practices in Telecom Industry

The Islamabad High Court (IHC) has ruled that the Competition Commission of Pakistan (CCP), not the Pakistan Telecommunication Authority (PTA), has the power to investigate and act against mobile phone companies involved in anti-competitive practices.

The decision, given by Justice Raja Inaam Ameen Minhas, settles a long-standing dispute between the two regulators. It clarifies that the CCP holds the main authority to ensure fair competition in all sectors, including the telecom industry.

IHC Clarifies PTA’s Role, Gives CCP Authority Over Anti-Competitive Practices in Telecom Industry

The judgment came after several major telecom companies — Jazz, Telenor, Zong, and Ufone — filed petitions challenging the CCP’s show-cause notices and investigations. These companies argued that since the telecom sector is already under the PTA’s regulation through the Pakistan Telecommunication (Re-organization) Act, 1996, the CCP should not have overlapping jurisdiction.

However, Justice Minhas rejected this argument. He stated that the Competition Act, 2010 gives the CCP exclusive powers to regulate competition in every sector of Pakistan’s economy. He explained that no industry, including telecommunications, is exempt from these laws.

According to the ruling, the PTA’s powers are limited to specific areas such as licensing, tariff approvals, spectrum management, and technical regulation. It does not have the authority to deal with market dominance, cartelisation, or collusive practices.

“The PTA may regulate services, licensing, and technical compliance,” the judgment said, “but it is the Competition Commission that ensures fair play and prevents abuse of market power.” The judge further noted that the presence of a sectoral regulator like the PTA does not eliminate the CCP’s role in enforcing competition laws.

Justice Minhas emphasised that the CCP’s jurisdiction covers all industries — whether telecom, banking, manufacturing, or energy. He described the CCP as the “federal watchdog for fair competition”, responsible for protecting both markets and consumers from unfair trade practices and price manipulation.

He also explained that the IHC had the authority to hear this case because both the CCP and PTA are based in Islamabad, and the proceedings originated from the CCP’s federal office.

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During the hearings, the CCP maintained that the telecom companies were attempting to avoid a lawful investigation into alleged market collusion and abuse of dominance. The commission argued that limiting oversight to the PTA alone would allow anti-competitive practices to go unchecked in the telecom market.

The court agreed with this position. Justice Minhas said that Pakistan’s laws are designed to allow coexistence between regulatory bodies, not competition between them. Sector regulators like the PTA focus on technical and operational aspects, while the CCP ensures fair market conduct.

In conclusion, the court reaffirmed that the Competition Commission of Pakistan has the legal and constitutional authority to regulate competition in the telecom sector. The PTA’s functions, meanwhile, remain restricted to licensing, tariff setting, and technical regulation.

This landmark decision strengthens the CCP’s position as the key authority for maintaining fair competition in Pakistan’s markets and ensures a clearer separation of roles between the country’s regulatory institutions.