Transcript Preparation of Competition Law in Cambodia

Challenges in Introducing
Competition Law in Cambodia
By
Om Dararith
Director of Legel Affairs Deparment
Ministry of Commerce, Cambodia
Content
• Preparation of Competition Law in
Cambodia
• Content of Cambodian Draft Competition
Law
• Legislation process in Cambodia
• Possible Challenges
Preparation of Competition Law in
Cambodia
1. May 2005: Completion of 2 studies on state of
competition in Cambodia, sponsored by UNCTAD
and EU MULTRAP Project
- Economic mapping of Cambodia: an overview of the
Economy and the Nature of Economic distorsions by
Goeffrey Sumner, EC Consultant.
- Review of the Legal and Administrative Constraints
on the Working of Markets in Cambodia by UNCTAD
Consultant on Competition Law and Policy in Cambodia.
Preparation of Competition Law in
Cambodia (cont’)
2. May 2005: Roundtable with government officials on
the new policy framework for Cambodia’s
competition law
3. May 2005: Roundtable with stakeholders on the
formulation of a competition policy framework for
Cambodia
Preparation of Competition Law in
Cambodia (cont’)
4. June 2005: Establishment of Working Group on
Competition Law and Policy by MOC, comprises of
7 members
- 1 representative from Council of Minister
- 2 representatives from Ministry of Commerce
- 1 representative from Ministry of Justice
- 1 representative from National Bank of Cambodia
- 1 representative from Ministry of Economy and
Finance
Preparation of Competition Law in
Cambodia (cont’)
5. August 2005: Visit of 2 UNCTAD Experts on Competition law and policy
-
To explore the state of competition in Cambodia, the stakeholders point
of views on the need and impact of competition law and policy in
Cambodia and to prepare a working program and schedule for the
competition law and policy in Cambodia
-
Meeting with different stakeholders:
- Funding and development organisations: World Bank, ADB, EC,
France Embassy
- Government officials and the working Group on Competition
- Professional associations: CAMFEBA, Phnom Penh Chamber
of Commerce, French-Cambodian Chamber of Commerce,
Phnom Penh Hotel Association…) and
- Professionals: Banks, legal consultant…
Preparation of Competition Law in
Cambodia (cont’)
6. January- March 2006:
-Draft Law on Competition by 2 UNCTAD experts: Mr.
Frédéric Jenny and Mr. Guy Charrier
7. March 2006:
- Present and discuss the first Draft with the Working Group
on Competition.
Review Draft Law on Competition by 2 UNCTAD
experts
 ADB expert, Mr.Kenneth Davidson
 Law professor in US and Abroad, 10 years
 Senior competition lawyer for the Federal Trade
Commission (FTC), 25 years
 Resident Advisor to the Indonesian Competition
Commission 2002-2003
 Advisor to other Competition Agencies and NGOs,
over a 20 year period
 “Creating Effective Competition Institutions: Ideas for
Transitional Economies” available on
www.kennethdavidson.com
Guiding principles
Written in plain language to be understood
by:
Government officials;
Member of Parliament;
Competition investigators and judges;
 Producers and consumers.

“UNCTAD draft” requires prior knowledge
of competition law and economics that
does not exist in transitional economies.
I. Structure of the Draft Law
Chapter
Content
Article
I
Objectives
1 to 3
II
Lawful and Unlawful practices
4 to 15
III
Office of Investigation and Prosecution
16 to 19
IV
Competition Court
20 to 22
V
Conduct of Competition Court
23 to 24
VI
Orders of Competition Court
25 to 27
VII
Appeals to the Supreme Court
28 to 29
VIII
Obligations of Government Agencies
30 to 34
IX
Penalties
X & XI
Transitional and Final Provisions
35
36 to 37
II. Main Functions
Function
Legal Framework
Chapter
Content
I
Objectives
II
Lawful and Unlawful practices
III
Office of Investigation and Prosecution
1 - Investigation
IV
Competition Court
2 - Prosecution
V
Conduct of Competition Court
3 - Court-like Decisions
VI
Orders of Competition Court
VII
Appeals to the Supreme Court
IX
Penalties
VIII
Obligations of Government
Agencies
Institutional Aspects
Competitive
Assessment
Other
X & XI
Transitional and Final Provisions
Step 1 at Ministry of commerce: Preparation of a draft, which is then
submitted to the Council of Ministers (CoM)
Step 2 at CoM: Secretary General of Government forwards the proposed
draft to CoJ & OBSES to review and comment
Step 3 at CoM: Discussion of the draft in an inter-ministerial meeting
Step 4 at CoM : Final approval by CoM, which is then submitted to
National Assembly
Step 5 at NA : Review and discus on the proposed
law with the commission
Step 6 at NA : Adoption of the Law by NA
Step 7 at SN : Review and discus on the proposed
law with the commission
Step 8 at SN: Adoption of the Law by SN
Legislation process
Possible Challenges
• Adequate capacities building (Regulator, Policies maker
and expert)
• Consumer group and the media ( So as to generate
awareness and support among the wider public for the
adoption and implementation of Competition Law and
Policies
• The business to ensure their compliance with the Law
and Policy
Challenges
•
•
•
•
Con’t
Lack of resources and training institution
Lack of public and private participation
Lack of information accessible
Limited of small and medium enterprises
and those are so small
• Politic influence
Institutional Options
Investigation
Unit
Independe
nt Agency
Prosecuti
ng Unit
Non
Independe
nt Agency
Court-like
Decisions
New
Court
Existin
g Court
A
Independent
Agency
Director of
Investigation
B
Independent
Agency
Director of
Investigation
First Instance
Court
First Instance
Court
C
MOC or other
Department
First instance
Prosecutor
D
MOC or other
Department
New
Prosecutor Unit
New Court /
Chamber
New Court /
Chamber
Thank you for your attention