ISLAMABAD - The Competition Commission of Pakistan (CCP) is likely to approve Mobilink-Warid merger, the sources claimed on Thursday.

They say the commission completed its proceedings after holding the second meeting on Wednesday.

The first hearing of the case was held on February 12. The commission is required to give final decision within three months.

During the second hearing, lawyers and representatives recorded their arguments and gave answers to the questions raised in the first meeting.

According to the sources, the commission may impose certain conditions to ensure fair play and to rule out the possibility of any monopoly emerging after the merger.

It is pertinent to mention here that one of the telecom providers is vocal against the merger, and has submitted its case to the commission claiming that in today’s era of heavy taxes, the merger will negatively impact the overall telecom sector.

In November, last year, Mobilink announced the acquisition of Warid Telecom, which was Pakistan’s first mobile telecommunication’s acquisition. 

As per law, both the companies have to get the approval from CCP, Pakistan Telecommunication Authority (PTA), Securities Exchange Commission of Pakistan, and the superior courts.

The CCP investigated the effect of the merger on the local market, and reached at the conclusion that the acquiring company did not become the dominant price setter.

CCP issues show-cause notice to company for deceptive

marketing practices

The Competition Commission of Pakistan (CCP), while concluding an enquiry, has issued a show-cause notice to Colgate-Palmolive Pakistan Limited for prima facie indulging into deceptive marketing practices in violation of Section 10 of the Competition Act, 2010.

CCP had received a complaint from Reckitt Benckiser Pakistan Limited alleging that Colgate-Palmolive Pakistan Limited, while marketing its products 'Max All Purpose Cleaner' (Max APC), used claims of "99.9% bacteria free" and "24 hours long lasting freshness" on the outer packaging of their product, along with claims that the product protects against "cold and flu", "skin infections" and "food poisoning", with a disclaimer reading "based on laboratory testing with concentrate usage", without any reasonable basis.

The complaint further alleged that Colgate-Palmolive Pakistan issued a trade letter which stated that Max APC offered for a lesser price a quantity of 50ml more than Reckitt Benckiser Pakistan Limited's product 'Dettol Surface Cleaner' (Dettol). They also suggested that Max APC is a more effective product than Dettol, thereby discrediting the properties and use of Dettol, without any result based testing to substantiate the same.

CCP's Office of Fair Trade (OFT) initiated an enquiry against the claims made by Colgate-Palmolive Pakistan Limited and concluded that the respondent had indeed been using the respective claims without sufficient test based results to substantiate the same, thereby violating Section 10 of the Competition Act. A show-cause notice has been issued to Colgate-Palmolive Pakistan and the company has been called upon for hearing on a given date.

CCP is mandated under the Competition Act to ensure fair competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from deceptive marketing practices.