Private Actions for Damages in Pakistan Competition Regime: Is there a Possibility?

Abstract

Infringements of competition rules are damaging to the economy and also cause direct harm to businesses (competitors) and citizens (e.g., the infringer’s customers). As direct affectees of competition law infringements, the customers pay higher prices and the competitors bear a loss of profit by those who are involved in such anti-competitive conduct. This is real harm to competition and consumer welfare. In Pakistan, there is a need to launch a discussion on the possibilities of introducing private actions for damages for anti-competitive conduct. There is also a need to evaluate the impact of the availability of a fully functional system of private enforcement of competition law focusing on actions for damages, taking guidance from a competition jurisdiction with an effective private enforcement system. The impact assessment will highlight the possible economic and social impacts of the various options available in order to ensure effective private enforcement of competition law. The process to initiate designing private damages actions in Pakistan must keep in mind the possible advantages of effective damages actions in competition cases. The Competition Commission of Pakistan needs to identify possible policy options and legal changes in order to facilitate private actions for damages in competition cases. This article discusses the concept of private enforcement, its significance, and its main objectives. It reviews the existing provisions, if any, concerning private damages actions against anti-competitive conduct in Pakistan's competition regime. It further deliberates on the development of a private enforcement mechanism in the European Union competition regime; and how the competition regime of Pakistan could benefit from the European Union competition jurisdiction for developing an effective private enforcement mechanism.