Competition Commission recovers fine of Rs. 10m from PIA
The Competition Commission of
Pakistan (CCP) has recovered a Rs10 million penalty from Pakistan International
Airlines (PIA), originally imposed in 2009 for abusing its dominant market
position by sharply increasing Hajj fares in 2008.
The penalty followed an inquiry
triggered by media reports alleging exorbitant pricing. The investigation
revealed that PIA had hiked fares by over 80 percent—raising prices from
Rs38,500 to Rs70,000 for the southern region and from Rs46,200 to Rs85,000 for
the northern region.
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The CCP found this conduct in
violation of Section 3(3)(a) of the then Competition Ordinance. Opting for a
lenient stance to promote compliance and responsible business conduct, the
Commission imposed a symbolic fine of Rs10 million.
PIA challenged the decision in the
Supreme Court, claiming it had suffered losses on Hajj operations and was
fulfilling national duties. The Court, however, referred the case to the
Competition Appellate Tribunal (CAT) for proper adjudication.
After repeated hearings, the case
was dismissed by the Tribunal due to non-appearance of PIA’s legal counsel.
Following the expiration of the appeal period, CCP invoked its enforcement
powers under Section 40(2)(a) of the Competition Act, 2010, and recovered the
penalty by attaching PIA’s bank accounts.
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This recovery marks a significant
enforcement milestone and highlights CCP’s ongoing commitment to curbing
anti-competitive practices.
Source: Nation