Transcript Competition & Consumer Protection Regime in Select

COMPETITION & CONSUMER PROTECTION
REGIMES IN SELECT MENA COUNTRIES
R I J I T S E N G U P TA
I N T E R N AT I O N A L C O N F E R E N C E F O R O I C M E M B E R S O N
COMPETITION ISSUES
2 1 - 2 2 N O V E M B E R 2 0 11 , I S TA N B U L
OUTLINE OF PRESENTATION
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Background
Countries
Consumer Protection Regimes: Overview
Competition Regime: Overview
ACPs
Key Emerging Issues for Future
Way Forward
Competition & Consumer Protection
Regimes in Select MENA Countries
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BACKGROUND
• Why this region?
- Dearth of background information
- Unfamiliar territory for CUTS (curiosity)
- Possibilities for comp reforms and consumer welfare
• Mission Objectives
Understand the prevailing state of the competition
policy & Law (CPL) and consumer protection regimes
in seven MENA countries & highlight key issues for
action
Competition & Consumer Protection
Regimes in Select MENA Countries
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COUNTRIES
ALGERIA, EGYPT, JORDAN, LEBANON, MOROCCO, SYRIA & TUNISIA
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Regimes in Select MENA Countries
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CONSUMER PROTECTION REGIME:
INTRODUCTION
• Historically, an important issues in the region
• Consumer issues dealt under the precincts of price
control, consumer subsidies, quality, etc.
• Consumer protection received renewed interest
under the Euro-Med agreements
• Explicit mention of consumer protection in some
agreements (Algeria, Egypt, Lebanon & Tunisia)
• Syria adopted one with German TA
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Regimes in Select MENA Countries
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CONSUMER PROTECTION REGIME:
LAWS & AGENCIES
• Current State of Laws & Govt. Agencies
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Regimes in Select MENA Countries
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CONSUMER PROTECTION REGIME:
INTERESTING FEATURES
• Govt a major economic player in the market
• Consumer Protection Agencies face resource
constraints, and lack adequate powers
• Consumer protection issues not well-integrated in
the national development policy
• Consumer organisations need to be strengthened
(Consumer Movement)
• Cons Orgns gets most support from Govt. Deptt.
• Limited interest of media on consumer issues
• Donor interests and support necessary
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Regimes in Select MENA Countries
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COMPETITION REGIME:
INTRODUCTION
• Introduction
- Important trading partner of Europe
- Trade liberalisation – role of external drivers
- Euro-Med Agreement (Comp in EMFTA)
- Competition provisions aligned with EC
- Advances in business environment reforms
• Policy environment for competition
- Govt still a major player in economic sphere
- Certain policies affect competition
- Political interference in enforcement
- In some countries, govt is supportive (funds++)
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COMPETITION REGIME:
LAWS & AGENCIES
Country
Law (Y/N)
Legislation
Year of
Enactment
2010
Competition Agency (CA)
Since
Algeria
Yes
Egypt
Yes
Jordon
Yes
Competition (antitrust, unfair
competition), Law No.10-05, as
amended, 2010
(Replaced the Competition
Ordinance of 2003 and 2008)
Law No. 3 of 2005, Law on the
Protection of Competition and the
Prohibition of Monopolistic Practices
Competition Law No. 33 of 2004
(Provisional Law in 2002)
Competition Council
2008
2005
Egyptian Competition
Authority
2005
2004
Competition Directorate
2002
Lebanon
No
Draft Law of 2007, proposed by the Still
Ministry of Economy and Trade
pending
N.A.
N.A.
Morocco
Yes
Competition (Antitrust), Law No. 0699, 2000
2000
Directorate of Competition 2001
and Prices & Competition
Council
Syria
Yes
Competition and Anti-Trust Law (Law
No 7/2008)
2008
Competition Commission
of Syria
2008
Tunisia
Yes
Law No 91-64, of 29 1991, on
Competition And Prices
1991
Directorate General for
Competition and
Economic Surveys &
Competition Council
1991
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COMPETITION REGIME:
INTERESTRING FEATURES
• Stakeholders’ interest & Linkages
Stakeholder Level of
Engagement
Academia
Regulators
Business
Civil Society
Mode of Engagement
Moderate to High In some countries like Egypt, Jordan and Morocco the mode of
engagement with academia was fairly systematic
High
Well-designed process of engagement driven by:
i) Legislative provisions and (ii) Operational arrangements
Low
Not much engagement reported, except occasional seminars and
exchanges (Egypt, Syria, Jordan)
Low to Moderate Some countries have representatives from consumer organisations
on the Board. Not much further to enable cooperation with CSO.
• Governance Issues in competition enforcement
- Decision-making
- Appointments
- Reporting Mechanisms
- Allocation of Funds
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ANTI-COMPETITIVE PRACTICES
(ALLEGED & RECORDED)
A snapshot of some anti-competitive practices
gathered during the mission
Country
Case Description
Algeria
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Abuse of dominance involving match manufacturer, SNTA
Abuse of dominance by the National Electronic Industry (ENIE)
Egypt
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Film distribution case (report submitted)
Cement sector Cartel (price-fixing)
Predatory pricing in Aluminium profiles
Allegation of abuse of dominant position in Cellphone (Zain)
Lebanon
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Alleged cartel in imported food and vegetables
Morocco
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A possible cement cartel (price-fixing)
Tunisia
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Abuse of dominant position in poultry (Poulina)
Jordan
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SUMMARISING THE KEY ISSUES
• Need for greater importance to Consumer Rights
(Human Rights perspective)
• Strengthening Consumer Protection Agencies (CPA)
• Greater institutional autonomy & powers to
agencies
• Tight penalties for violators of laws
• Capacity building programmes for CPAs & CAs
• A consumer movement/network in the region
• Greater stakeholder awareness & engagement
• Mobilising media interests on consumer issues
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WAY FORWARD
• Political buy-in and public support for competition
and consumer reforms
• Refinement of policies and legislations
• Institutional reforms in agencies
• Enhancing interest of young professionals (University
courses, Research programmes)
• Strengthening CSOs engagement (network)
• Mobilise attention of development partners
• Integration into regional legislations/processes
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Shukran, Merci, Teşekkür Ederim
Rijit Sengupta
[email protected]
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