CAT dismisses ICAP's plea against CCP order
The CCP, in 2008 had initiated suo motu proceedings against ICAP for issuing a revised Accounting Technical Release 14 (ATR-14), approved in its 197th Council meeting held on July 25, 2008. The revised ATR-14 introduced minimum hourly charge-out rates and fixed minimum audit fees for public sector entities.
The CCP found this to be in violation of Section 4(1) of the Competition Ordinance, 2007, which prohibits anti-competitive agreements.
The Commission declared ATR-14 null and void, directed its withdrawal from ICAP's Members' Handbook, and ordered publication of a withdrawal notice in two newspapers. A penalty of Rs1 million was also imposed on the Institute. ICAP challenged the order before the Tribunal, with senior counsel Dr Farogh Naseem contending that ICAP, as a statutory regulator, had the authority to prescribe minimum fees for audit services, particularly in the public sector. He requested the tribunal to overturn the CCP's decision.
The CCP's legal team argued that regardless of its statutory status, ICAP could not fix prices in a competitive market. The Commission maintained that such conduct amounted to collusive price-fixing, which is strictly prohibited under the competition laws. After hearing both sides, the Tribunal upheld CCP's order and dismissed the appeal.
In a separate matter, CAT also dismissed the Karachi Stock Exchange's appeal against CCP for alleged abuse of dominant position, terming it infructuous.
Copyright Business Recorder, 2025
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