Islamabad, May 6, 2025: The Competition Appellate Tribunal (CAT) has reserved its verdict in a case filed by the Institute of Chartered Accountants of Pakistan (ICAP) against a penalty imposed by the Competition Commission of Pakistan (CCP) over alleged price-fixing.
The case dates back to 2008, when CCP initiated suo moto proceedings against ICAP for issuing a revised Accounting Technical Release 14 (ATR-14).
Approved at ICAP’s 197th Council meeting on July 25, 2008, the revised ATR-14 set minimum hourly charge-out rates and fixed minimum audit fees for public sector entities.
CCP found this 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 ICAP to withdraw it from the Members’ Handbook, and publish a withdrawal notice in two newspapers. A fine of Rs. 1 million was also imposed.
ICAP challenged the decision before CAT. Representing ICAP, senior counsel Dr. Farrukh Nasim argued that the institute is a statutory regulator and has the authority to set minimum fees for audit engagements, especially for government institutions.
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He urged the tribunal to overturn the penalty.
CCP’s counsel countered that ICAP, though a regulatory body, cannot fix prices in a competitive market. The Commission termed such practices as collusive price-fixing—strictly prohibited under all modern competition laws.
The tribunal has reserved its judgment.
The outcome is likely to impact how professional bodies operate within competitive sectors going forward.
