ISLAMABAD — The Competition Appellate Tribunal (CAT) has upheld a penalty imposed by the Competition Commission of Pakistan (CCP) on the Institute of Chartered Accountants of Pakistan (ICAP) for engaging in price-fixing practices. The Tribunal dismissed ICAP’s appeal, confirming CCP’s 2011 order that declared a fee-setting directive by the institute to be anti-competitive.
The case dates back to 2008 when ICAP, during its 197th Council meeting, approved a revised Accounting Technical Release 14 (ATR-14). The directive prescribed minimum hourly charge-out rates and fixed audit fees for public sector entities, effectively standardizing prices for audit services.
CCP initiated suo moto proceedings against ICAP and, after review, found the directive in violation of Section 4(1) of the Competition Ordinance, 2007, which prohibits collusive and anti-competitive agreements. The Commission nullified ATR-14, ordered its removal from ICAP’s Members’ Handbook, directed the publication of a withdrawal notice, and imposed a penalty of Rs1 million on the Institute.
In its appeal before CAT, ICAP—represented by senior legal counsel Dr. Farogh Naseem—argued that as a statutory body, it had regulatory authority to prescribe audit fee structures, particularly for the public sector. The CCP countered that even a statutory body cannot set prices in a market-driven economy, and ICAP’s actions amounted to illegal price-fixing.
After hearing arguments from both sides, the Tribunal sided with CCP, reinforcing the principle that statutory status does not exempt institutions from competition laws.
Separately, the Tribunal also dismissed an appeal filed by the former Karachi Stock Exchange in a case related to alleged abuse of dominant position, terming the matter infructuous.
