Individual exemption

Competition Commission recognizes the necessity of concession agreements in terms of mega-projects of national importance, for example concession agreements for port-terminals or airport fuelling facilities

Commission observed that exemptions under S. 5 or 8 of the Competition Act, 2010, should be applied for as soon as agreements (containing restrictive clauses) have been drafted on the promise that an executed version will also be provided to the Commission immediately upon execution of the agreement

While the Commission allows for exemptions in respect of agreements which satisfy the criteria established by S. 9 of the Competition Act, 2010, the regulation of such exempted agreements is of paramount importance for the diligent safeguard of public interest

Underlying principle justifying the grant of an exemption to an agreement containing restrictive clauses is that pro-competitive effects which the agreement results in will outweigh any distortion to competition law brought about by the same and in turn the public at large will benefit.

Utility Bill Payment Services (UBPS), facility introduced under the direction of the Supreme Court and regulation of State Bank of Pakistan had proved beneficial for utility companies by increasing their bill collection at a reasonable fee charged to them; and also providing relief to customers by providing them different delivery channels without bearing any cost

Such was a fit case for exemption

Parties could avail the benefit of exemption to avoid unnecessary work load for business as well as to lawfully reduce the cost

In view of peculiar facts and circumstances involved in the case, Competition Commission would grant individual exemption subject to conditions.