OPTIONS INTERNATIONAL (SMC-PVT.) LTD. vs The COMPETITION COMMISSION OF PAKISTAN S

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OPTIONS INTERNATIONAL (SMC-PVT.) LTD. VS The COMPETITION COMMISSION OF PAKISTAN S. 1(3)---Distorting competition within Pakistan---Scope---Use of the "Starbucks" name and logo---Both the 'Starbucks" name and logo were registered abroad and in Pakistan---Matter before the Competition Commission ("Commission"), and then before the Competition Appellate Tribunal ("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---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 penalty imposing order, which penalty was enhanced by the Tribunal---Counsel for appellant contended that the Competition Act, 2010 ('the Act') only applied to 'undertakings and all actions or matters that take place in Pakistan and distort competition within Pakistan', as stipulated in subsection (3) of section 1 of the Act, however since Starbucks Corporation USA (respondent No. 2) did not have any outlet in Pakistan, nor had 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---Validity---Said contention had no substance---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---Appeal was dismissed. Citation Name: 2024 CLD 1221 SUPREME-COURTBookmark this Case OPTIONS INTERNATIONAL (SMC-PVT.) LTD. VS The COMPETITION COMMISSION OF PAKISTAN Ss. 1(3) & 38---Distorting competition---Use of the "Starbucks" name and logo---Matter before the Competition Commission ("Commission"), and then before the Competition Appellate Tribunal ("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---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 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---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---Validity---Counsel for the appellant conceded that the law authorizes the penalties which had been imposed under section 38 of the Competition Act, 2010 ('the Act')---Therefore, it was not understandable how the same could be objected to---No other point had been urged which may persuade the Court to take a view different from the one taken by the Tribunal---Appeal was dismissed.

OPTIONS INTERNATIONAL (SMC-PVT.) LTD. vs The COMPETITION COMMISSION OF PAKISTAN S — 2024 CLD 1221 SUPREME-COURT

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