Transcript Competition Overview – Barbados Experience

Fair Trading Commission
Overview of Competition Law
The Experience of Barbados
Competition law and Policy Training Workshop
March 30-31, 2011
The Savannah Hotel
Competition Law or Antitrust Law
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 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
1.
2.
3.
- Established 2001
Utilities Regulation Act 2001 - To Ensure Efficient
Utility Services
Fair Competition Act 2003 - To Promote and
Maintain Competition
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
Investigations
Industry
Abuse of Dominance • Telecommunications
• Construction
• Oil Industry
Anti Competitive
Agreements
• Professional Services
• Shipping
• Commercial Banking
Merger
• Telecommunications
• Distribution
No.
Performance To Date
INVESTIGATIONS /Guidance
Total
Abuse of Dominance Investigations
Agreements Investigations
Anti Competitive Conduct Guidance
Merger Investigations
1
Merger Guidance
5
Authorisation Investigations
0
Authorisation Guidance
1
Future Work Focus
1. Refine legislative framework
2. Inform and Educate businesses
3. Improve investigative procedures
4. Increase training of staff
5. Ensure Government Policy conforms with
Competition
6. Improve Knowledge of Judiciary
7. Provide Technical Assistance Regionally
Fair Trading Commission
Overview of Competition Law
The Experience of Barbados
Competition law and Policy Training Workshop
March 30-31, 2011
The Savannah Hotel