Following a critical verdict, the Islamabad High Court (IHC) has dismissed appeals by major mobile operators Jazz Pakistan, Telenor Pakistan, Zong Pakistan, Ufone, Warid Telecom, PTCL, and Wi-Tribe, calling them “incompetent”.
The decision allows the Competition Commission of Pakistan (CCP) to resume its investigations into alleged misleading marketing and unfair pricing practices.
Telecom firms had challenged the CCP’s show-cause notices based on deceptive claims such as “unlimited internet” offers that had hidden data limits and extra fees on prepaid cards.
According to the court, the CCP has the authority to investigate anti-competitive conduct under the Competition Act, 2010, in all industries, including the telecommunications sector.
The court’s ruling states that sector-specific regulators, such as the Pakistan Telecommunication Authority (PTA), are also subject to the CCP’s anti-competitive jurisdiction. The ruling also highlighted the fact that the CCP initiated an inquiry in 2014 on concerns that terms such as “unlimited internet” may mislead consumers.
The IHC also reaffirmed that the CCP has the authority to initiate enquiries under Section 36 of the law without waiting for a particular complaint. This ruling eliminates stay orders that have prevented CCP action for nearly a decade.
This ruling is likely to provide consumers with better transparency regarding data usage terms, telecom pricing, and promotional claims. For telecom companies, it signals a more rigorous regulatory regime driven by competition and the importance of fair competition as opposed to market dominance.