CCP recovers PKR 5 million penalty from Wateen Telecom

ISLAMABAD: The Competition Commission of Pakistan (CCP) has successfully collected a fine of PKR 5 million from Wateen Telecom (Pvt.) Ltd. This recovery was achieved under Section 40(2)(a) of the Competition Act, 2010, which authorizes the CCP to enforce penalties by seizing the bank accounts of non-compliant entities.

The fine was initially imposed by the CCP following an investigation prompted by multiple complaints from residents of the Defence Housing Authority (DHA) Lahore. The residents had raised concerns about the lack of alternative service providers and the poor quality of services offered by Wateen Telecom.CCP issues show cause notices to GM Cables and Newage Cables

The CCP’s probe uncovered that DHA Lahore and Wateen Telecom had entered into an exclusive agreement that granted Wateen Telecom the sole rights to provide telecommunication and media services in certain phases of DHA Lahore. This arrangement was deemed a violation of Section 4 of the Competition Act, 2010, which bans agreements that restrict consumer choice.

On March 22, 2011, the CCP issued an order imposing a fine of PKR 10 million on DHA Lahore and PKR 5 million on Wateen Telecom. DHA Lahore had already paid its portion of the fine.

Subsequently, both entities contested the CCP’s decision by filing an appeal with the Competition Appellate Tribunal (CAT). In July 2024, the CAT rejected the appeals, thereby affirming the penalties initially imposed by the CCP.

Following this decision, the CCP used its authority under Section 40(2)(a) of the Competition Act, 2010, to recover the remaining penalty from Wateen Telecom.