IHC Upholds CCP Probe into Telecom Deceptive Practices

ISLAMABAD: The Islamabad High Court (IHC) has decisively affirmed the Competition Commission of Pakistan (CCP)’s authority to probe deceptive marketing and anti-competitive conduct in the telecom sector, crushing petitions from giants Jazz, Telenor, Zong, Ufone, Warid, PTCL, and Wi-Tribe.

In a razor-sharp 19-page verdict, Justice Inaam Ameen Minhas upheld CCP’s show-cause notices under the Competition Act 2010, targeting misleading ads and hidden prepaid charges. The court declared CCP’s economy-wide mandate—including telecom—runs parallel to the Pakistan Telecommunication Authority (PTA).

Telecom operators’ claim of PTA exclusivity was demolished: PTA handles technical/operational issues, while CCP tackles anti-competitive behavior, dominance abuse, and deceptive marketing. Hidden fees on prepaid cards and “unlimited internet” packages with fair usage caps were flagged as consumer deception.

The IHC also axed petitions on procedural grounds—CCP notices aren’t adverse orders, and appeals lie with CCP’s bench and Competition Appellate Tribunal. All seven petitions were deemed “not maintainable”.

Background: In December 2013, CCP issued notices to Mobilink, Ufone, Telenor, Zong, and Warid over 1–5% “service/maintenance/operational” fees on prepaid reloads—no services rendered. An April 2014 inquiry hit Wi-Tribe and ISPs for “unlimited” packages with hidden limits, violating Section 10(2)(b).

Telecom firms secured stay orders since 2014, paralyzing CCP probes. The IHC ruling obliterates these barriers, unleashing CCP to resume investigations into deceptive practices.