April 22, 2007	Sunday	Rabi-us-Sani 04, 1428

KARACHI, April 21: The Competition Commission now in process of formation will have the authority to carry out “dawn raids’’ and its members or officers will be allowed to enter and search any premises, including through forcible entry, said Mr Khalid Mirza, chairman of the commission, on Thursday evening.

This authority of the commission to carry out “dawn raids’’ was not given to the Monopoly Control Authority (MCA) that operated for 35 years, from 1971 to 2006, as an autonomous quasi judicial body which remained dependent on government for funds and whose chairman and members did not enjoy any tenure or fixed terms facility.

However, he clarified that raids will be carried out under appropriate safeguards.

Khalid Mirza was invited by the Management Association of Pakistan (MAP) on Thursday where he spoke at length on the genesis of the anti-cartel and anti-trust laws in Pakistan and the formation and function of MCA which is now being replaced by the Competitive Commission and a new law is being drafted.

The new law forbids unfair trading practices and stipulates an elaborate procedure for review and clearance of acquisitions and mergers which meet the thresholds that would be notified under rules, he announced.

Drawing a comparison between the Monopoly and Restrictive Trade Practices Ordinance (MRTPO) enforced in 1970 and the operation of MCA and the new law now being drafted and the new institution being set in place, he said lessons have been drawn from the international competition agencies that have a broader, more progressive and redefined mandate.

“Instead of seeking to curtail growth of economic muscle, these competition agencies endeavour to promote healthy competitions amongst economic agents, as well as prevent manipulative business practices, and also most importantly, serve as an authoritative advocate on all matters, pertaining to competition,’’ he pointed out.

The concept, he elaborated, is to encourage growth of business undertakings to achieve greater economies of scale rather than to have any connotation with respect to size. Then it is to put in place a framework for ensuring a free interplay of the forces of competition and consumer protection and finally to encourage responsible and commercial rationally business conduct on part of business enterprises.

Under the proposed framework, he said the approach is to address the abuse of dominance in business rather than focusing on dominance only. But then the new law also indicates a certain market share beyond which there is a presumption of market dominance.The new law, Khalid Mirza declared, affords the members of the commission a certain degree of protection, from arbitrary removal to security of tenure that ensures freedom of the commission, which the members of the MCA did not enjoy.

Similarly, certain provisions in the new law, if implemented would ensure tied sources of funding to meet operational needs.