DHA Lahore, Wateen Telecom fined for exclusive agreement

July 22, 2024 (MLN): The Competition Appellate Tribunal has imposed fines of Rs10 million on DHA Lahore and Rs5m on Wateen Telecom for engaging in an exclusive agreement that restricted the provision of telecommunication and media services solely to Wateen Telecom within DHA Lahore.

“In a significant ruling, the Competition Appellate Tribunal has dismissed the appeals filed by Defence Housing Authority (DHA), Lahore, and Wateen Telecom (Pvt.) Limited, upholding the Competition Commission of Pakistan’s (CCP) decision to impose substantial penalties for engaging in prohibited agreements that restricted consumer choice,” said a press release issued by the CCP.

The Competition Appellate Tribunal has maintained the penalties levied by the CCP on DHA Lahore and Wateen Telecom.

“DHA Lahore was fined Rs10 million and Wateen Telecom Rs5m for entering into an exclusive arrangement of limiting the provision of telecommunication and media services within DHA Lahore to Wateen Telecom alone,” it said.

The proceedings were initiated following numerous complaints from DHA Lahore residents about the lack of choice in service providers other than Wateen Telecom and the unsatisfactory quality of services offered.

Investigations by the CCP revealed an exclusive arrangement between DHA Lahore and Wateen Telecom, granting the latter sole rights to provide telecommunication and media services in certain phases of DHA.

The exclusive agreement between DHA Lahore and Wateen Telecom was found to be in contravention of Section 4 of the Competition Act, 2010.

Consequently, the CCP, vide its order dated March 22, 2011, imposed penalties of Rs10m on DHA and Rs 5m on Wateen.

The provisions of the agreement granting Wateen exclusive rights, including the right of way and soil digging permissions, were declared void and without legal effect.

Both DHA Lahore and Wateen Telecom appealed the CCP's decision before the Competition Appellate Tribunal, Islamabad.

After extensive hearings, the Tribunal dismissed both appeals, affirming the CCP’s findings and penalties.

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