CCP Recovers Rs. 20.4 Million From Two More Telcos in Cartel Case

The Competition Commission of Pakistan has recovered Rs. 20.4 million in penalties from two more Long Distance International operators in the International Clearing House cartel case, bringing the total recovered amount to Rs. 772 million. The penalties were originally imposed after the CCP found that all fourteen Long Distance International (LDI) operators had formed a cartel under the ICH arrangement in 2012, effectively eliminating competition in the international telephony market. The CCP continues its efforts to ensure the complete recovery of penalties imposed on telecom companies involved in the cartel. The ICH setup required all incoming international calls to be routed through a single gateway managed by Pakistan Telecommunication Company Limited (PTCL), leading to fixed high call termination rates and reduced market efficiency. The Competition Appellate Tribunal (CAT) later upheld the CCP’s findings of cartelization and abuse of dominance, while revising the penalty to two percent of the revenues earned through the ICH arrangement. Following the Tribunal’s decision, the CCP initiated recovery proceedings against the operators. Some companies have challenged the CAT’s decision before the Supreme Court of Pakistan; however, there is no restraining order, and the CCP continues to recover penalties in accordance with the law.