CCP redefining its role to proactive market architect

ISLAMABAD: The Competition Commission of Pakistan (CCP) is quietly redefining its role from a cartel-busting watchdog to a proactive market architect, marking a strategic shift in how competition is regulated and shaped in Pakistan’s economy.

Sources said that long seen as an enforcement body focused on fines and inquiries, the CCP is now expanding its reach. It has strengthened its merger review system, activated its Market Intelligence Unit to detect collusion before it happens, and established a Centre of Excellence to study market dynamics. The new direction signals a move from punishing violations to shaping markets and promoting fair competition.

The Commission is increasingly intervening in structural market issues- dealership and distribution models, supply chain barriers, and digital platforms to address distortions that restrict entry and innovation. Recent advisories, such as those highlighting exclusionary distribution practices in agricultural machinery schemes, reflect a shift toward pre-emptive regulation.

Globally, competition authorities are adapting to challenges from digital platforms and data-driven dominance, and the CCP appears to be following suit. Its growing focus on e-commerce and online consumer protection underscores a recognition that market power today often lies in algorithms, not just price-fixing.

At the policy level, competition enforcement is now linked to broader economic reform. The CCP’s clearance of mergers worth millions in FDI and enforcement actions totaling over a billion rupees in fines demonstrate how it is balancing regulation with facilitation. The aim, officials said, is to make markets more transparent, competitive, and growth-oriented.

Analysts view the shift as timely but demanding. The CCP’s dual role as both regulator and market facilitator will require greater analytical capacity and coordination with other regulators in telecom, energy, and finance. “If the CCP maintains independence and focus, it can move Pakistan from an economy of monopolies to one of competition,” said an Islamabad-based economist.

While the Commission continues to penalise collusion and deceptive marketing, its focus is clearly evolving. The new CCP is less about chasing violators and more about designing fairer markets, moving from reaction to prevention, and from watchdog to architect, they added.