Court Backs CCP’s Inquiry Into Honda Atlas Cars Over Anti-Competitive Practices

The Lahore High Court (LHC) has dismissed the petition filed by Honda Atlas Cars (Pakistan) Limited against the Competition Commission of Pakistan (CCP), upholding the regulator’s authority to seek information and conduct inquiries into possible anti-competitive practices in the automobile sector. Justice Raheel Kamran, in a detailed judgment, ruled that the CCP has clear powers under Sections 36 and 37 of the Competition Act, 2010 to collect data, examine market conduct, and investigate anti-competitive behaviour. The court observed that Honda Atlas had initially participated in the proceedings before challenging the CCP’s jurisdiction, a move the court said was clearly intended to stall the inquiry. The CCP’s inquiry, initiated in November 2018, focused on allegations of on-money payments, delayed deliveries, and price hikes after booking. Between 2018 and 2022, the Commission issued at least five notices seeking details about production, pricing, localization ratios, and dealer arrangements. Honda repeatedly sought extensions but failed to fully comply, despite physical visits by the CCP’s inquiry team in 2019 and 2021. Instead of submitting complete data, the company raised technical objections, questioning the legality of the inquiry and the Commission’s quorum. In June 2023, it approached the LHC and obtained a stay order that effectively froze the investigation for nearly three years. Justice Kamran rejected Honda Atlas’s claim that the CCP lacked jurisdiction after the 18th Amendment, holding that the Competition Act is a federal law applicable throughout Pakistan. Referring to the Supreme Court’s Dalda Foods case (PLD 2023 SC 1991), the judge emphasized that providing information to the CCP is not an adverse action but a legal duty necessary to ensure fair competition. While dismissing the petition as “devoid of merit,” the court expected the CCP to conclude the long-pending inquiry, preferably within six months. The judgment sets a precedent against corporate delay tactics, reinforcing the CCP’s role as a national watchdog empowered to hold dominant players accountable in Pakistan’s growing auto sector.