In order to gather information for its thorough investigation of the proposed PTCL-Telenor merger, the Competition Commission of Pakistan (CCP) is sending out detailed questionnaires to market participants, obtaining their responses, and getting feedback from the Pakistan Telecommunication Authority (PTA). The efficiencies that the merging firms claim will also be evaluated by CCP, and they must benefit customers.
The proposed purchase of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) is presently the subject of a Phase II review by CCP. This important evaluation will decide whether to accept the merger and what restrictions might be put in place to guarantee fair competition in the market.
On March 6, 2024, PTCL submitted a pre-merger application. By law, CCP had thirty days to examine the application and issue a Phase I order. Phase 1 order was announced on May 3, 2024, according to the competition law’s timeline. The pre-merger application will be taken into consideration during the Phase II examination, as Phase-I analysis indicated that there would be some possible impact on competition in the telecom industry. CCP has ninety days to finish this thorough analysis and issue its directive.
An extensive analysis of the merger’s possible effects on market competition is part of a Phase II examination. When initial research indicates that the merger may limit competition in the telecom industry, this phase is started.A Phase II evaluation can result in “conditional” approval most of the time. In the past, CCP has authorized mergers subject to certain behavioral and structural changes aimed at reducing anti-competitive consequences and safeguarding consumers from misuse of dominant position.
Pakistan has a compulsory, suspensory merger control framework, which means that before a merger can be concluded, it must be examined and approved by the antitrust agency if all notification criteria are met. If there is non-compliance, there may be severe penalties, remedies, or the transaction may be declared void.
