The Competition Commission of Pakistan (CCP) will resume its investigation into alleged monopolistic practices by Honda Atlas Cars after the Lahore High Court (LHC) dismissed the company’s petition challenging the inquiry, The Express Tribune reported.
Justice Raheel Kamran ruled that the CCP has clear authority under Sections 36 and 37 of the Competition Act, 2010 to collect data and investigate anti-competitive behaviour. The court directed the CCP to make “best endeavours” to complete its inquiry within six months.
The inquiry, launched in November 2018, focuses on issues such as “own-money” charges, delayed deliveries, and price increases on booked vehicles. Between 2018 and 2022, the CCP issued five notices seeking details on production, pricing, localisation ratios, and dealership arrangements.
Honda Atlas had initially cooperated before questioning the CCP’s jurisdiction and later obtained a stay order in June 2023, halting the probe for nearly three years. The company argued that the inquiry violated constitutional powers devolved to provinces under the 18th Amendment.
Rejecting this argument, the court affirmed that the Competition Act is a federal law applicable nationwide. It cited the Supreme Court’s decision in the Dalda Foods case, which held that providing information to the CCP is a legal obligation, not a punitive action.
Justice Kamran observed that Honda was aware of the reasons for the inquiry since its inception and found its repeated objections “untenable.” He added that the CCP’s notices were preliminary and did not determine rights or impose penalties.
The judgment clarified that the ongoing process under Section 37 is aimed at gathering information. Once the CCP establishes sufficient grounds for violation of Chapter II of the Act, it may initiate proceedings against the company.
The court concluded that Honda’s petition was without merit and dismissed it, allowing the CCP to continue its investigation into alleged anti-competitive conduct in the automobile sector.
