The Competition Appellate Tribunal (CAT) on Wednesday dismissed ten long-pending appeals filed by several banks and the Pakistan Banks Association (PBA), upholding the Competition Commission of Pakistan’s (CCP) order imposing collective penalties of approximately PKR 205 million for cartel-like conduct.
According to a statement issued by the CCP, the appeals challenged the CCP’s April 2008 order as well CCP’s Appellate Bench’s Order dated 10-06-2009, which found the PBA and seven major banks guilty of collusive practices in introducing an Enhanced Savings Account (ESA).
The Commission had concluded that the coordinated move distorted competition and created unfair conditions for small bank depositors, in violation of Section 4 of the Competition Ordinance, 2007.
Moreover, the CCP imposed a penalty of Rs30 million on the PBA and Rs25 million each on Habib Bank Limited, Allied Bank Limited, MCB Bank Limited, United Bank Limited, Saudi Pak Bank Limited, Atlas Bank Limited, and National Bank Limited.
CAT said that after hearing extensive arguments, the tribunal dismissed all appeals through a short order, thereby affirming the penalties. Detailed reasons are expected to be issued later.
“The ruling marks a significant milestone for the CCP, as the ESA case was the Commission’s first major enforcement action following its inception.
“The outcome reflects the CCP’s sustained and effective follow-up of long-pending litigation amid intensified legal reforms,” the CCP said.
Commenting on the development, Dr Kabir Ahmed Sidhu, Chairman of CCP, said the verdict reinforces the principle that justice may be delayed but cannot be avoided, adding that no entity can indefinitely escape accountability for anti-competitive conduct.
American Dollar Exchange Rate