rijit sengupta international conference for oic members on competition issues 21-22 november 2011,...
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RIJIT SENGUPTA
INTERNATIONAL CONFERENCE FOR OIC MEMBERS ON COMPETITION ISSUES
21-22 NOVEMBER 2011, ISTANBUL
COMPETITION & CONSUMER PROTECTION REGIMES IN SELECT MENA COUNTRIES
OUTLINE OF PRESENTATION
• Background• Countries• Consumer Protection Regimes: Overview• Competition Regime: Overview• ACPs• Key Emerging Issues for Future• Way Forward
Competition & Consumer Protection Regimes in Select
MENA Countries2
BACKGROUND
• Why this region?- Dearth of background information - Unfamiliar territory for CUTS (curiosity)- Possibilities for comp reforms and consumer
welfare
• Mission ObjectivesUnderstand 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 Countries3
COUNTRIES
ALGERIA, EGYPT, JORDAN, LEBANON, MOROCCO, SYRIA & TUNISIA
Competition & Consumer Protection Regimes in Select
MENA Countries4
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
Competition & Consumer Protection Regimes in Select
MENA Countries5
CONSUMER PROTECTION REGIME: LAWS & AGENCIES
• Current State of Laws & Govt. Agencies
Competition & Consumer Protection Regimes in Select
MENA Countries6
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
Competition & Consumer Protection Regimes in Select
MENA Countries7
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++)
Competition & Consumer Protection Regimes in Select
MENA Countries8
COMPETITION REGIME: LAWS & AGENCIES
Competition & Consumer Protection Regimes in Select
MENA Countries9
Country Law (Y/N)
Legislation Year of Enactment
Competition Agency (CA)
Since
Algeria Yes Competition (antitrust, unfair competition), Law No.10-05, as amended, 2010(Replaced the Competition Ordinance of 2003 and 2008)
2010 Competition Council 2008
Egypt Yes Law No. 3 of 2005, Law on theProtection of Competition and the Prohibition of Monopolistic Practices
2005 Egyptian Competition Authority
2005
Jordon Yes Competition Law No. 33 of 2004 (Provisional Law in 2002)
2004 Competition Directorate 2002
Lebanon No Draft Law of 2007, proposed by the Ministry of Economy and Trade
Still pending
N.A. N.A.
Morocco Yes Competition (Antitrust), Law No. 06-99, 2000
2000 Directorate of Competition and Prices & Competition Council
2001
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
COMPETITION REGIME: INTERESTRING FEATURES
• Stakeholders’ interest & Linkages
• Governance Issues in competition enforcement- Decision-making- Appointments- Reporting Mechanisms- Allocation of Funds Competition & Consumer
Protection Regimes in Select MENA Countries
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Stakeholder Level of Engagement
Mode of Engagement
Academia Moderate to High In some countries like Egypt, Jordan and Morocco the mode of engagement with academia was fairly systematic
Regulators High Well-designed process of engagement driven by:i) Legislative provisions and (ii) Operational arrangements
Business Low Not much engagement reported, except occasional seminars and exchanges (Egypt, Syria, Jordan)
Civil Society Low to Moderate Some countries have representatives from consumer organisations on the Board. Not much further to enable cooperation with CSO.
ANTI-COMPETITIVE PRACTICES (ALLEGED & RECORDED)
Country Case Description
Algeria Abuse of dominance involving match manufacturer, SNTA Abuse of dominance by the National Electronic Industry (ENIE)
Egypt Film distribution case (report submitted) Cement sector Cartel (price-fixing)
Jordan Predatory pricing in Aluminium profiles Allegation of abuse of dominant position in Cellphone (Zain)
Lebanon Alleged cartel in imported food and vegetables
Morocco A possible cement cartel (price-fixing)
Tunisia Abuse of dominant position in poultry (Poulina)
Competition & Consumer Protection Regimes in Select
MENA Countries11
A snapshot of some anti-competitive practices gathered during the mission
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
Competition & Consumer Protection Regimes in Select
MENA Countries12
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
Competition & Consumer Protection Regimes in Select
MENA Countries13
Shukran, Merci, Teşekkür Ederim
Rijit [email protected]
Competition & Consumer Protection Regimes in Select
MENA Countries14