ISLAMABAD: As e-commerce and online businesses continue to grow at a fast clip across the country, the Competition Commission of Pakistan (CCP) has launched draft studies on e-commerce platforms and the small and medium enterprises (SMEs), making recommendations to create a level playing field and address competition concerns.
The study on “Competition and Trade Practices Regulation in the Era of E-Commerce, Big Tech and Data Sciences” highlights possible competition concerns in online platforms.
The serious concerns and violations at the digital market forum fall under Section 3 (abusive conduct by dominant platforms) and Section 10 (deceptive marketing practices) of the Competition Act, 2010.
The study contains analyses and the regulation strategies in developed countries across the globe as well as other countries in the region.
Regulator makes recommendations to create level playing field
The e-commerce study aims to provide guidelines serving as a minimum benchmark of basic disclosures companies should follow to avoid deceptive marketing practices.
The study is part of the CCP’s strategic vision that identifies priority areas for removing anti-competitive distortions in the market and at e-commerce platforms.
The other draft study by the CCP — titled “Improving Economic Efficiency in Small and Medium Enterprises in Pakistan” — aims to provide guidelines for SME sector’s growth.
The study reviews the SME policy framework in Pakistan and, based on two surveys concerning demand-side constraints and supply-side issues in SMEs’ growth and challenges in financing, offers recommendations to the government of Pakistan and other entities concerned to ensure a level playing field for these enterprises.
The issues include improving the economic efficiency of SMEs and state-owned enterprises, collaborations and partnerships for providing guidelines, and improving compliance by strengthening the leniency framework, and knowledge-based advocacy.
In a statement, CCP Chairperson Rahat Kaunain Hassan said the role of competition regulator was that of an umpire, and whenever it is called for policy intervention, it would voice concerns as per its mandate.
She said the commission strongly believed in effective enforcement, which was globally viewed as the best advocacy, not only for the private businesses but also in public procurement to reduce concession agreements for regulatory exclusivity.
Published in Dawn, December 12th, 2021
