Islamabad, The Competition Commission of Pakistan (CCP) has entered a Phase II review of the proposed acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL), an analysis that will determine the approval and potential conditions of the merger to maintain market competition.
According to Competition Commission of Pakistan, PTCL filed a pre-merger application on March 6, 2024. Following a Phase I review, which concluded on May 3, 2024, CCP has decided to proceed with a more detailed Phase II review due to concerns about potential impacts on telecom sector competition. This second phase, which must be completed within 90 days from the date of the Phase I conclusion, involves an in-depth investigation that includes collecting extensive data, responses from market participants, and comments from the Pakistan Telecommunication Authority (PTA).
The CCP’s review process is rigorous, reflecting the mandatory and suspensory nature of Pakistan’s merger control regime. Non-compliance with this process can lead to significant penalties, including fines or the nullification of the merger. Historically, the CCP has granted approvals conditionally, requiring structural and behavioral modifications to mitigate any anti-competitive effects and prevent abuses of dominant market positions.