fair trading commission overview of competition law the experience of barbados competition law and...
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Fair Trading Commission
Overview of Competition Law
The Experience of Barbados
Competition law and Policy Training Workshop
March 30-31, 2011The Savannah Hotel
Law that promotes and maintains market competition by regulating anti-competitive conduct.
Adam Smith: Monopoly - "...great enemy to good management Competition - medium for "...new divisions of labour, and new improvements of art”
Competition Law or Antitrust Law
• Competition is not an end in itself but a process that advances goals of economic well being, ultimately for consumers
Competition law or Antitrust law (Three main elements)
Prohibits agreements/practices that restrict competition between business - price fixing cartels
Prohibits abusive behavior by a dominant firm, - predatory pricing, excessive pricing, refusal to supply
Reviews mergers and acquisitions and joint ventures of large corporations:
•Prohibit potentially anti-competitive mergers•Prescribe remedies to protect competition
History of Competition Law
1890 — Sherman Antitrust Act (United States)
Prohibits agreements in restraint of trade and monopolization
1914 — Clayton Antitrust Act (United States) Prohibits specific types of conduct and mergers that may lessen
competition
1957 — (Article 81 and 82) Treaty of Rome established (European Economic Community) Promoting economic integration to promote free trade
1976 — Hart-Scott-Rodino Antitrust Improvement Act (United States) investigate mergers
1980 —Policies to tackle restrictive practices (UNCTAD)
Growth of Competition Law World wide(2010 - over 90 countries, 110 Authorities)
1900 - Influence of monopolies United States
1960 - Economic integration, free trade
1980 - Economic efficiency, Privatization
2008 - Transition from state control, Eastern Europe, also Latin America/Barbados
Fair Trading Commission Barbados
Requirement of Ch. 8 –Treaty of
Chaguaramas
Public Consultation
Fair Trading Commission - Established
20011. Utilities Regulation Act 2001 - To
Ensure Efficient Utility Services 2. Fair Competition Act 2003 - To
Promote and Maintain Competition3. Consumer Protection Act 2003 - To
Protect Consumer Rights
Fair Competition act (Scope of Coverage)
Similar to Treaty of Chaguaramas / EC Article 81 and 82
• EC Anti-Competitive Agreements (Horizontal/Vertical)
• Abuse of Dominance • Interlocking Directorates • Includes Merger Control Provisions• Provides for Authorisations• Includes all domestic markets• Includes Statutory Corporations
Initial Challenges Faced by Commission
Reaction of Business Community○ Over regulation, ○ Lacking the necessary expertise, ○ Restricted ability to expand/compete
internationally Lack of Competition Culture and
infrastructure Inexperienced Staff Inexperienced Judiciary/Legal/Technical Inadequacy of legislation/administrative
procedures Limited financial resources
Initial Approach Adopted
Informal Grace Period
Took on selected matters
Sought technical Assistance
Inform and educate public Special Stakeholder Seminars (business/Consumers
etc.) Guidelines, Articles in press, Fliers Website Radio and TV
Subsequent Approach Adopted (to Develop Competition Culture)
Enforcement/Education
Expanded Education Programme
Internal Research studies
Expand Range of Investigations
Own Initiative Sector Investigations
Specific Training Programmes
Build Alliances - Business/Public Sector
Develop International Linkages
Industries Investigations
Type of Investigation
s Industry No.
Abuse of Dominance
• Telecommunications• Construction• Oil Industry
Anti Competitive Agreements
• Professional Services• Shipping • Commercial Banking
Merger• Telecommunications• Distribution
Performance To Date
Merger Investigations 1
Merger Guidance 5
Authorisation Investigations 0
Authorisation Guidance 1
INVESTIGATIONS /Guidance Total
Abuse of Dominance Investigations
Agreements Investigations
Anti Competitive Conduct Guidance
Future Work Focus
1. Refine legislative framework2. Inform and Educate businesses 3. Improve investigative procedures4. Increase training of staff 5. Ensure Government Policy conforms
with Competition6. Improve Knowledge of Judiciary7. Provide Technical Assistance
Regionally
Fair Trading Commission
Overview of Competition LawThe Experience of Barbados
Competition law and Policy Training Workshop
March 30-31, 2011The Savannah Hotel