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3. Undue concentration of economic power, etc. prohibited.---There shall be no undue concentration of economic power, unreasonable monopoly power or unreasonably restrictive trade practices.

4. Circumstances constituting undue concentration of economic power.---Undue concentration of economic power shall be deemed to have been brought about, maintained or continued if--

(a) there is established, run or continued an undertaking the total value of whose assets is not less than fifty million or such other amount as the Authority may by rule prescribe, and which is--

(i) not owned by a public company, or

(ii) is owned by a public company in which any individual holds or controls shares carrying not less than fifty per cent., or such other percentage as the Authority may by rule prescribe, of the voting power in the undertaking;

(b) there are any dealings between associated undertakings which have or are likely to have the effect of unfairly benefiting the owners or shareholders of one such undertaking to the prejudice of the owners or shareholders of any other of its associated undertakings.

5. Circumstances constituting unreasonable monopoly power.---(1) Unreasonable monopoly power shall be deemed to have been brought about, maintained and continued if--

(a) there has been created or maintained any such relationship between two or more undertakings as makes them associated undertakings where they are competitors in the same market and together produce, supply, distribute or provide not less than one-third of the total goods or services in such market;

(b) there has been any acquisition by one person or undertaking of the stock or assets of any other person or undertaking, or any merger of undertakings, where the effect of the acquisition or merger is likely to create monopoly power or to substantially lessen competition in any market, including any acquisition which creates any such relationship as is referred to in clause (a);

(c) any loan is granted by a bank or insurance company to any of the associated undertakings of amounts greater or on terms more favourable than for loans made available to other undertakings in comparable situations, or any loan is granted by a bank or insurance company to a person undertaking not associated with it on the condition. or understanding that the borrower: or any of its associated undertakings will make any loan to a person or undertaking associated with the lender.

(2) No such relationship, acquisition, merger or loan as is referred to in subsection (1) shall be deemed to have the effect of bringing about, maintaining or continuing unreasonable monopoly power if it is shown--

(a) that it contributes substantially to the efficiency of the production or distribution of goods or of the provision of services or to the promotion of technical progress or export of goods;

(b) that such efficiency or promotion could not reasonably have been achieved by means less restrictive of competition; and

(c) that the benefits of such efficiency or promotion clearly outweigh adverse effect of the absence or lessening of competition.

6. Unreasonably restrictive trade practices.---(1) Unreasonably restrictive trade practices shall be deemed to have been resorted to or continued if there is any agreement--

(a) between actual or potential competitors for the purpose or having the effect or--

(i) fixing the purchase or selling prices or imposing any other restrictive trading conditions with regard to the sale or distribution of any goods or the provision of any services;

(ii) dividing or sharing of markets for any goods or services;

(iii) limiting the quantity or the means of production, distribution or sale with regard to any goods or the manner or means of providing any services;

(iv) limiting technical development or investment with regard to the production, distribution o~ sale of any goods or the provision of services;

(v) excluding by means of boycott any other person or undertaking from the production, distribution or sale of any goods or the provision of any services;

(b) between a supplier and a dealer of goods fixing minimum resale prices, including--
(i) an agreement with a condition for the sale of goods by a supplier to a dealer which purports to establish or provide for the minimum prices to be charged on the resale of the goods in Pakistan; or

(ii) an agreement which requires as a condition of supplying goods to a dealer to the making of any such agreement;

(c) which subjects the making of any agreement to the acceptance by suppliers or buyers of additional goods or services which are not by their nature or by the custom of the trade, related to the subject-matter of such agreement.

(2) No such agreement as is referred to in subsection (1) shall be deemed to constitute an unreasonably restrictive trade practice if it is shown--

(a) that it contributes; substantially to the efficiency of the production or distribution of goods or of the provision of services or to the promotion of technical progress or export of goods;

(b) that such efficiency or promotion could not reasonably have been achieved by means less restrictive of competition; and

(c) that the benefits from such efficiency or promotion dearly outweigh the adverse effect of the absence or lessening of competition.

7. Other circumstances constituting concentration of economic power, etc.---(1) Without prejudice to the provisions of sections 4, 5 and 6, the Authority may by General Order prescribed the circumstances in which and the conditions under which undue concentration of economic power or unreasonable monopoly power shall be deemed to exist and the practice which shall be deemed to be unreasonably restrictive trade practice.

(2) Where the Authority is of opinion that, the making of a General Order under subsection (1) may be in the public interest, it shall conduct an inquiry affording the persons or undertakings likely to be affected by such order such opportunity of being heard and of placing before it relevant facts and material as it may deem fit.

(3) Before making any General Order under subsection (1), the Authority shall--

(a) publish in the official Gazette and in such other manner as in its opinion will bring it to the notice of all persons and undertakings likely to be affected thereby a draft of the proposed General Order together with a notice inviting suggestions or objections to be submitted before a date specified therein;

(b) consider any objection or suggestion which may be received by it from any person or undertaking with respect to the draft; and

(c) where it deems appropriate, afford an opportunity to any such person or undertaking of being heard and of placing before .it facts and material in support of the objection or suggestion.

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