ISLAMABAD – The Competition Commission of Pakistan (CCP) has launched two draft studies in the Small & Medium Enterprise (SME) and E-commerce sectors offering solid recommendations to create a level playing field for SMEs and highlighting possible competition concerns in the e-commerce/online platforms market.
The study report on “Improving Economic Efficiency in Small-and-Medium Enterprises in Pakistan” offers solid recommendations to ensure a level-playing field for SMEs to compete, which shall lead to the growth of the SME sector.
The study reviews the SME Policy Framework in Pakistan and based on two surveys concerning demand side constraints and supply side issues in SMEs’ growth and challenges in SME financing, offers recommendations to the Government of Pakistan and other concerned entities focusing on competition aspects, i.e., to ensure a level-playing field for SMEs to compete, which shall lead to the growth of the SME sector.
The study on “Competition and Trade Practices Regulation in the Era of E-Commerce, Big Tech and Data Sciences” which highlights possible competition concerns in the e-commerce/online platforms market, which may fall under Section 3 (abusive conduct by dominant platforms) and Section 10 (deceptive marketing practices) of the Competition Act, 2010, and analyzes regulation strategies in more developed countries across the globe as well as other countries in the Region.
Chairperson CCP Ms. Rahat Kaunain Hassan launched these studies while briefing the participants of 23rd meeting of Competition Consultative Group. With regard to the E-commerce study, she clarified that the CCP does not aim to become a data protection agency or over-regulate. Instead, the study aims to provide guidelines serving as a minimum benchmark of basic disclosures companies should adhere to, to avoid deceptive marketing practices.
The studies are part of the CCP’s strategic vision that identifies the priority areas including the essential commodities for removing anti-competitive distortions in the market, public procurement for reducing collusive practices and promoting fair competition, concession agreements for regulating exclusivity, digital markets and e-commerce for consumer protection, improving the economic efficiency of SMEs and SOEs, collaborations and partnerships for providing guidelines, improving compliance by strengthening the Leniency Framework, and knowledge-based advocacy. Explaining the rationale behind conducting the studies, Rahat said that the role of the competition regulator is that of an umpire, and whenever it will call for policy intervention, the Commission will voice concerns as per its mandate. While with regard to anti-competitive practices/market distortion, it will act without fear and favour. She said that the Commission strongly believes in effective enforcement which is globally viewed as best advocacy.
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