Watchdog Seizes Fines from LDI Firms
- The Competition Commission of Pakistan (CCP) is actively recovering penalties from Long Distance International (LDI) operators found to have participated in a cartel through the International Clearing House...
- In recent actions, the CCP recovered Rs19 million from Multinet (Pvt) Ltd and Rs1.4 million from Voice Communications, bringing the total recovered in the ICH case to Rs772...
- The penalties originate from a 2012 CCP investigation that steadfast 14 LDI companies engaged in cartel activity under the ICH framework.
CCP Recovers Millions in Penalties from Telecoms Involved in International Clearing house Cartel
The Competition Commission of Pakistan (CCP) is actively recovering penalties from Long Distance International (LDI) operators found to have participated in a cartel through the International Clearing House (ICH) arrangement. This effort continues despite ongoing appeals to the Supreme Court from several companies.
In recent actions, the CCP recovered Rs19 million from Multinet (Pvt) Ltd and Rs1.4 million from Voice Communications, bringing the total recovered in the ICH case to Rs772 million. The commission has stated its commitment to securing full recovery from all penalized telecom operators.
The 2012 Investigation and ICH Arrangement
The penalties originate from a 2012 CCP investigation that steadfast 14 LDI companies engaged in cartel activity under the ICH framework. This arrangement was found to have eliminated competition within the international telephony market.
The ICH system routed all incoming international calls through a single gateway managed by Pakistan Telecommunication Company Ltd (PTCL). This resulted in fixed, high termination rates and diminished market efficiency.
Appellate Tribunal and Ongoing Legal Challenges
The Competition Appellate Tribunal (CAT) afterward upheld the CCP’s findings of cartelization and abuse of dominance. The CAT revised the penalty structure to two percent of revenues earned through the ICH arrangement, as reported by Dawn.
Following the tribunal’s decision, the CCP initiated recovery proceedings against PTCL, Multinet Pakistan, 4B Gentel International, Wi-tribe Pakistan, Dancom Pakistan, Wise Communication System, Worldcall Telecom, ADG (Pvt) ltd, LinkdotNet Telecom, Telecard, Circle Net Communications, Wateen Telecom, Redtone Telecommunications, and Telenor LDI Communications.
Despite appeals to the Supreme Court by several of these companies, the CCP maintains that no restraining order currently prevents recovery efforts. The commission affirmed it will continue enforcement “strictly in accordance with law”.
