January 15, 2008	Tuesday	Muharram 05, 1429

ISLAMABAD, Jan 14: The Competition Commission of Pakistan (CCP) on Monday granted companies a transitional period of 90 days for obtaining individual exemptions under section 5 of the Competition Ordinance, 2007 in respect of all such agreements entered prior to and subsisting at the time of promulgation of the Ordinance.

Such agreements might have been entered into either with or without approval of or under intimation to the defunct Monopoly control Authority (MCA).

It is believed that this decision of the commission shall facilitate the undertakings by grant of transitional period, in compliance with the Competition Ordinance.

According to an announcement of the commission, Dewan Salman Fibre Ltd has been directed by the Competition Commission of Pakistan to file an undertaking on behalf of the board of directors and an affidavit on behalf of its chief executive officer affirming that they have not organised themselves in any formal association in any manner and the informal association, that does exist, in no manner meets or coordinates to adopt or fix parallel pricing or levels of output.

The hearing was held under the chairmanship of Khalid A Mirza, Abdul Ghaffar, Rahat Kaunain Hassan and Maleeha Mimi Bangash. Others members were also present.

Senior Executive (Mergers, Cartels, Monopoly and Trading) and Registrar assisted the commission during the hearing.

Four other four leading Polyester Staple Fibre (PSF) Manufacturers, namely Pakistan Synthetics Ltd, ICI Pakistan Ltd, Rupali Polyester Ltd And Ibrahim Fibres Ltd were also heard by the commission during hearings last week.

They were directed to file similar undertakings and affidavits by Jan 15.

The MCA had initiated suo moto inquiry under section 14 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 (Ordinance) against the Staple Fiber Manufacturers (PSF) for colluding in parallel pricing as reported in a Karachi-based daily. The manufacturers were heard by the MCA and were also served with show-cause notices. In response to the notices, the PSF manufacturers denied providing any news agency or media organisation any price quotation of their products or acting in collusion.

The case was initiated against the undertaking by the MCA under the provisions of Section 11 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 and was heard under the same provisions read with Section 59 of the Competition Ordinance, 2007.

Although MCA was no more there and had been replaced by Competition Commission, some of the previous cases related to it were being heard by the commission.