(Appellate Jurisdiction)
Present:
Justice Qazi Faez Isa, CJ
Justice Naeem Akhtar Afghan
Justice Shahid Bilal Hassan
Civil Appeal No.1011 of 2024
(On appeal against the judgment dated 29.05.2024 of the Competition
Appellate Tribunal, Islamabad passed in Appeal No. 45/2023)
M/s Options International (SMC-Pvt.) Ltd through its CEO Appellant
Versus
The Competition Commission of Pakistan through its
Registrar and another Respondents
For the Appellant: Mr. Taimoor Aslam Khan, ASC
For Respondent No. 1: Mr. Hafiz Naeem, Legal Advisor
For Respondent No. 2: Not represented
Date of Hearing: 07.08.2024
ORDER
Qazi Faez Isa, CJ. This appeal has been filed under section 44 of the
Competition Act, 2010 (‘the Act’) against the judgment dated 29 May
2024 passed by the Competition Appellate Tribunal, Islamabad (‘the
Tribunal’). The judgment of the Tribunal is unanimous; two learned
Members agreeing with the learned Chairperson.
- The Competition Commission of Pakistan (‘the Commission’) had
imposed a penalty of five million rupees on the appellant and ordered
further additional penalty of one hundred thousand rupees per day from
the date of passing of the order in case of non-compliance. - The appellant had assailed before the Tribunal the above order
dated 19 December 2018 passed by the Commission. The Tribunal
decided the appeal by enhancing the penalty amount from five million to
six million rupees but reduced the per day penalty amount to five
thousand rupees from one hundred thousand rupees with effect from 3
December 2021, which was the date from which the Tribunal had become
functional. We inquired from learned counsel which judgment, whether of
CA No. 1011 of 2024 2
the Commission or the Tribunal, favours the appellant, and he stated that
the one of the Tribunal. - We also inquired from the learned counsel whether the appellant
disputes that the name Starbucks and logo are registered trademarks, and
he conceded that both the said name and logo are registered abroad and
in Pakistan. The matter before the Commission, and then before the
Tribunal, was with regard to the use of the Starbucks name and logo by
the appellant and selling its products under such name and style. A
complaint from the proprietor of the said tradename and trademark,
Starbucks Corporation USA (respondent No. 2), was received by the
Commission which took action on it, and passed the abovementioned
order. - The learned counsel contended that the Act only applies to
‘undertakings and all actions or matters that take place in Pakistan and
distort competition within Pakistan’, as stipulated in sub-section (3) of
section 1 of the Act. However, he submitted, since the respondent No. 2
does not have any outlet in Pakistan, nor has authorized anyone to use its
name, logo and products in Pakistan, therefore, the appellant was not in
competition with the respondent No. 2, its authorized user(s) and/or its
products. - We cannot bring ourselves to agree with the said submission, which
has no substance. The appellant had put itself forward by selling its own
products under the international brand name Starbucks and by using its
logo, which must have had the effect of distorting competition within
Pakistan because a local vendor selling similar products, as those being
sold by the appellant, would be at a serious disadvantage and not able to
compete therewith since the unsuspecting public would believe,
understand or perceive the same to be the genuine products of the
respondent No. 2. - The learned counsel then objected to the levy of the said penalties.
We inquired from the learned counsel whether the law authorizes the
penalties which had been imposed and he conceded that it did under
CA No. 1011 of 2024 3
section 38 of the Act. Therefore, it is not understandable how the same
can be objected to. - No other point has been urged which may persuade us to take a
view different from the one taken by the Tribunal. Therefore, this appeal is
dismissed, but with no order as to costs as the respondent No. 2 did not
enter appearance. Copy of this order be sent to the respondent No. 2 for
information.
Chief Justice
Judge
Judge
Islamabad
7 August 2024
Atif/
Approved for reporting