Competition Advocacy Competition Advocacy in Mauritiusin Mauritius..

Mosadeq Sahebdin,Mosadeq Sahebdin, Coordinator, Coordinator, Institute for Consumer Protection,Institute for Consumer Protection,

MauritiusMauritius..

Introduction.Introduction.

Mauritius adoptedMauritius adopted its Competition Act in September its Competition Act in September 2007. 2007.

We are now witnessing a different political We are now witnessing a different political environment. Competition Law is brandished as the environment. Competition Law is brandished as the panacea for all the consumers’ sufferings.panacea for all the consumers’ sufferings.

Anti-competitive practices on different markets Anti-competitive practices on different markets have increased with impunity, to the detriment of have increased with impunity, to the detriment of consumers’ interest. Exclusive dealing, predatory consumers’ interest. Exclusive dealing, predatory pricing, unfair trade practices such as misleading pricing, unfair trade practices such as misleading advertisements are some of the characteristics of advertisements are some of the characteristics of this marketthis market..

Political environmentPolitical environment

Mauritius is a democratic country with general Mauritius is a democratic country with general elections held every five years. elections held every five years.

Recent tendency has shown that there is a power Recent tendency has shown that there is a power shift from one party alliance to the other every five shift from one party alliance to the other every five years, notwithstanding the performance of the years, notwithstanding the performance of the outgoing government. outgoing government.

While civil society organizations are supposed to be While civil society organizations are supposed to be apolitical, trade union leaders openly support one apolitical, trade union leaders openly support one alliance or the other during election campaigns. alliance or the other during election campaigns. Some trade unions have even evolved into political Some trade unions have even evolved into political parties, although with a marginal support. parties, although with a marginal support.

Consumer organization's standConsumer organization's stand

Consumer organizations, on the other hand, have Consumer organizations, on the other hand, have always adopted a neutral position towards political always adopted a neutral position towards political parties. The independence from political groups has parties. The independence from political groups has enabled us, at least for ICP, to win the credibility enabled us, at least for ICP, to win the credibility and respect among the population.and respect among the population.

Private sector’s standPrivate sector’s stand

However, the pervasive influence of the private However, the pervasive influence of the private sector in major decisions is a cause for concern sector in major decisions is a cause for concern among the consumer movement. among the consumer movement.

This situation is a direct consequence of political This situation is a direct consequence of political party funding on the eve of general elections. party funding on the eve of general elections.

Lack of transparency in political party funding has Lack of transparency in political party funding has led people to believe that decision makers tend to led people to believe that decision makers tend to look after the interests of the business community look after the interests of the business community before taking any major decision.before taking any major decision.

Competition advocacyCompetition advocacy

While most trade union organizations and other While most trade union organizations and other civil society organizations have shown little interest civil society organizations have shown little interest in competition policy, ICP has been frequently in competition policy, ICP has been frequently called upon to express its stand on anticompetitive called upon to express its stand on anticompetitive practices, much before the Competition Act of 2003 practices, much before the Competition Act of 2003 was circulated. was circulated.

In fact, we acquired knowledge on anticompetitive In fact, we acquired knowledge on anticompetitive practices through external consumer publications. practices through external consumer publications. With the opening of huge Departmental stores, in With the opening of huge Departmental stores, in 2000, the French multinationals brought, with them, 2000, the French multinationals brought, with them, the accompanying anticompetitive practices, such as the accompanying anticompetitive practices, such as predatory pricing. predatory pricing.

Political will.Political will.

When the first Competition Act 2004, was adopted, When the first Competition Act 2004, was adopted, it was a diluted version having suffered from private it was a diluted version having suffered from private sector influence. sector influence.

We therefore pressed for Government to declare its We therefore pressed for Government to declare its political will in favour of an independent political will in favour of an independent Competition Authority. Competition Authority.

The new Government decided it would do away The new Government decided it would do away with the Competition Act 2004 and would replace with the Competition Act 2004 and would replace it by a new law. It took three years to adopt a new it by a new law. It took three years to adopt a new law.law.

Private sector influencePrivate sector influence

Consumer organizations are expected to maintain a Consumer organizations are expected to maintain a dialogue with the private sector, while closely dialogue with the private sector, while closely safeguarding their independence. ICP has had the safeguarding their independence. ICP has had the experience of working with the business community experience of working with the business community when we published a consumer dedicated page, when we published a consumer dedicated page, called Porte Monnaie, in L’express daily. called Porte Monnaie, in L’express daily.

Yet, when it came to Competition Law, we were Yet, when it came to Competition Law, we were perceived as fanatics. The business community was perceived as fanatics. The business community was not pleased at all of our denunciations of not pleased at all of our denunciations of anticompetitive practices. anticompetitive practices.

Political party fundingPolitical party funding

Six months before the elections, before even Six months before the elections, before even publishing their programme, the different political publishing their programme, the different political blocks try to win as much support from the private blocks try to win as much support from the private sector as possible. This involves getting money to sector as possible. This involves getting money to fund the electoral campaign. fund the electoral campaign.

This is where ICP has expressed itself publicly This is where ICP has expressed itself publicly many times. At all the NRG meetings, I expressed many times. At all the NRG meetings, I expressed our concern on this. We are sure that the private our concern on this. We are sure that the private sector, as in many countries, influence government sector, as in many countries, influence government policies to a great extent. policies to a great extent.

Active participation in the elaboration of the lawActive participation in the elaboration of the law

ICP has always submitted its comments on the relevant ICP has always submitted its comments on the relevant bills. In addition to submitting such comments to the bills. In addition to submitting such comments to the concerned ministry, we have always ensured that our concerned ministry, we have always ensured that our comments are not left out in a drawer somewhere. To comments are not left out in a drawer somewhere. To this effect, we always send a copy of the comments to this effect, we always send a copy of the comments to the newspapers, so that they are published. the newspapers, so that they are published.

This is exactly what we did after the circulation of the This is exactly what we did after the circulation of the new Competition Bill 2007. We sent a copy of the bill new Competition Bill 2007. We sent a copy of the bill to international experts to enlist their comments and to to international experts to enlist their comments and to CUTS. CUTS.

From there we wrote our own comments and compiled From there we wrote our own comments and compiled a Memorandum. a Memorandum.

Publication of Policy BriefsPublication of Policy Briefs

As soon as we got involved in this project, we As soon as we got involved in this project, we issued regular Policy Briefs relevant to Competition issued regular Policy Briefs relevant to Competition Law. These were sent by e-mail, to some 200 Law. These were sent by e-mail, to some 200 contact persons, including government officials, contact persons, including government officials, private sector leaders and other opinion leaders in private sector leaders and other opinion leaders in the civil society. the civil society.

This also enabled us to reach people who would This also enabled us to reach people who would normally not care to listen to us, mainly high normally not care to listen to us, mainly high government officials and top ranking officials of the government officials and top ranking officials of the private sector. The circulation of such Policy Briefs private sector. The circulation of such Policy Briefs had a big advantage, it did not cost anything to had a big advantage, it did not cost anything to produce, except for internet fees.produce, except for internet fees.

Media interventionsMedia interventions

It must be underlined that Mauritius has a long It must be underlined that Mauritius has a long history of a free press.history of a free press.

Our experience in article writing has enabled us to Our experience in article writing has enabled us to be effective in our communication strategy with the be effective in our communication strategy with the press. press.

Our communication strategy consists of identifying Our communication strategy consists of identifying one or two journalists in each paper or radio and fed one or two journalists in each paper or radio and fed him/them with information that they would consider him/them with information that they would consider to be newsworthy. Another element of our to be newsworthy. Another element of our communications strategy is to feed journalists with communications strategy is to feed journalists with ready-to-publish articles to respond to their query. ready-to-publish articles to respond to their query.

Communications strategy with the radiosCommunications strategy with the radios

In order to make the most out of the radio, we need In order to make the most out of the radio, we need to master how to reply precisely and briefly. This to master how to reply precisely and briefly. This requires some dexterity in choosing your words to requires some dexterity in choosing your words to express fully what you want to say while being very express fully what you want to say while being very brief. brief.

When other actors are participating in the live talk-When other actors are participating in the live talk-shows, we would phone in our questions. This time shows, we would phone in our questions. This time we would see to it that the answer is in the question we would see to it that the answer is in the question itself. itself.

Occasional position papersOccasional position papers

As a consumer organization, ICP is often called upon to As a consumer organization, ICP is often called upon to express its stand on current consumer issues. Now that we express its stand on current consumer issues. Now that we have better insight into anti-competitive practices and have better insight into anti-competitive practices and competition law, it is easier to relate the issues raised from competition law, it is easier to relate the issues raised from the competition angle. the competition angle.

For example, prior to the adoption of a new Insurance Act, For example, prior to the adoption of a new Insurance Act, we raised the question of free choice and related it to we raised the question of free choice and related it to monopolistic tendencies of some huge companies. monopolistic tendencies of some huge companies.

Our stand on the rising prices of beef was based on the Our stand on the rising prices of beef was based on the cartelist behavior of the importers. cartelist behavior of the importers.

ConclusionConclusion

Finally, for the Competition Law to be effective, civil Finally, for the Competition Law to be effective, civil society involvement is indispensable. society involvement is indispensable.

Furthermore, given the increasingly global nature of Furthermore, given the increasingly global nature of anti-competitive practices of “big business”, an acute anti-competitive practices of “big business”, an acute need for international sharing of knowledge amongst need for international sharing of knowledge amongst CSO’s in order to facilitate informed domestic CSO’s in order to facilitate informed domestic intervention on cross-border anti-competitive actions is intervention on cross-border anti-competitive actions is much felt. much felt.

Consumer Organizations are, in their essence, the Consumer Organizations are, in their essence, the mouthpiece of the immediate beneficiaries of mouthpiece of the immediate beneficiaries of Competition policy and law, in other words those who Competition policy and law, in other words those who are the first to be affected by anti-competitive practices. are the first to be affected by anti-competitive practices.