CCP Partially Recovers Rs. 495 Million Penalty From LDI Operators

The Competition Commission of Pakistan (CCP) has made a partial recovery of Rs. 495 million from Long Distance International (LDI) operators in the International Clearing House (ICH) case. This includes Rs. 458 million recovered from Pakistan Telecommunication Company Limited (PTCL) and Rs. 37 million from M/s Link Dot Net. The recovery follows the decision of the Competition Appellate Tribunal, which upheld CCP’s order that declared the ICH arrangement illegal and anti-competitive. The ICH agreement, introduced in 2012, funneled all incoming international calls through a single PTCL-controlled gateway. By fixing termination rates at 8.8 US cents per minute, more than four times the previous rate, the operators effectively eliminated competition, drove up costs for overseas callers, and reaped revenue windfalls exceeding 300 percent. CCP had originally imposed penalties equal to 7.5 percent of each operator’s annual turnover. While the Tribunal later reduced the fines to 2 percent of ICH-related revenues, it directed all operators to deposit the penalties within 30 days. Chairman CCP, Dr. Kabir Sidhu, reaffirmed the Commission’s resolve to strictly enforce competition law. He cautioned that while business forums can play a constructive role in information sharing, they must not be misused for price coordination or collusion. He further warned against market abuse, manipulation, exploitation of consumers, and other anti-competitive practices.