Role of Stakeholders in Role of Stakeholders in promoting competition promoting competition

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How competition reforms benefit our daily lives?

OFC-PIDS-CUTS Competition Advocacy Seminar

4th November 2014, Manila, The Philippines

OutlineOutline

• Understanding the value of competition, especially in our daily lives

• Why ‘Competition Advocacy’ is crucial• Competition is not an end in itself, but a tool

for achieving other developmental objectives• Stakeholders in competition advocacy, and their

roles

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Value of Competition in Our Daily Value of Competition in Our Daily

LivesLives

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Competition Advocacy: What & Competition Advocacy: What &

WhyWhy

“Competition Advocacy is one of the main pillars of modern competition law, which aims at creating, expanding and strengthening awareness of competition in the market”.

•A key element of a competition agency’s function•Involves close interaction with other stakeholders•Aimed at achieving specific objectives in policy and practice

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Competition not an end, but a Competition not an end, but a

means…means…

• Having a competition law not enough, effective implementation is necessary

• Promoting competition in key markets – leading to desirable outcomes for beneficiaries

• Need for well-designed government policies, effective competition regime and sector regulation

• Different stakeholders need to be engaged in the process

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‘‘Key stakeholders’ in competition Key stakeholders’ in competition

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POLICYMAKERS, COMPETITION AGENCY,

CONSUMER PROTECTION AUTHORITY, CIVIL SOCIETY,

ACADEMIA, SECTOR REGULATORS,

MEDIA, BUSINESS ASSOCIATIONS, DEVELOPMENT PARTNERS

LEGAL FRATERNITY, JUDICIARY, ETC.

PolicymakersPolicymakers

Policy makers: government officials who make policies together with parliamentarians

• Expected RolesoLay out conducive policy and legal frameworksoRelease resources for functioning of institutionsoMonitoring and accountability

• Conditions precedentoAppreciation of benefits from competition reformsoCapacity to implement policies

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Competition AgencyCompetition Agency

• Established by the competition law, tasked with enforcement

• Expected roleso Effective enforcement of competition law o Communication with key stakeholders and beneficiarieso Activities aimed at curbing ACPs, promoting competition

culture and awarenesso Undertake competition advocacy

• Conditions precedento Subject knowledge and skillso Human and financial resourceso Functional autonomy o Good interface with complementary institutions

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Civil Society/Consumer OrganisationsCivil Society/Consumer Organisations• Organizations advocating for the rights of consumers

• Expected Roles o Watchdogs for competition and consumer authoritieso Mobilising consumers voice on need for protectiono Advocacy and pressure for competition reforms to help

achieve desirable goals for consumers

• Conditions precedento understanding on competition and consumer issues o Capacity for interaction with various stakeholderso Support from development partnerso Recognition by the relevant authorities

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AcademiaAcademia• University department, research institutions and organisations

• Expected Roleso Policy research and adviceo Assist CA in doing research in DCso Capacity building for officials

• Conditions precedento Integration of competition policy and law in curriculumo Knowledge of competition and consumer issues by

researchers

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Sector Sector RegulatorsRegulators

• Regulatory authority established by sector specific legislation

• Expected Roleso Promote competition in their respective sectorso Make decisions that have a bearing on competitiono Protect consumer interests in their sectors

• Conditions Precedento Resources to carry the taskso Good legal frameworko Sound working relations with competition authority

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Business Business

• Regulated entity hence has big role to play

• Expected Roleso Competing fairly and avoid consumer violationso Being sources of information for competition authorityo Business associations promoting understanding on

competition among members (firms)o Associations staying clear from anticompetitive conduct

• Conditions precedento No regulatory captureo Acceptance of competition reforms by (big) businesses o Friends of competition (Business leaders…)

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MediaMedia

• Communicating with the general public (print, electronic, etc.)

• Expected Roleso Promote greater public awareness of issueso Awareness on institutions and legal frameworko Highlight possible anticompetitive practices,

consumer/business harmo Constructive criticism

• Conditions precedento Availability of trained reporterso Willing contributors (articles, reports, etc)o Good interaction with institutions (press releases etc)

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Legal FraternityLegal Fraternity• Legal practitioners (for business and in competition agency)

• Expected Roleso Educate clients on compliance mechanismso Help judiciary establish case lawso Ensure careful enforcement of lawso Help identify loopholes in the administration system

• Conditions precedento Proper understanding of the provisions of the law, and goalo Quick justice delivery system

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JudiciaryJudiciary

• The buck stops at the judiciary, hence determines efficiency of system

• Expected Roleso Efficient disposal of related trials/caseso Establish case laws

• Conditions precedento Knowledge on the subjectso Conducive platform for presiding cases

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ConclusionsConclusions

• Stakeholders need to understand and perform their roles

• Each stakeholder needs training/CB to effectively perform role

• Programmes on awareness of competition and consumer issues and their benefits critical for success

• Stakeholders need to complement each other rather than step on each other’s toes

• Resource constraints major challenge; hence development partners called upon

• Advocacy key to buy-in; important to establish a cadre of advocates through training programmes

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Endnotes……

• CUTS implementing CREW project (www.cuts-ccier.org/CREW) in Philippines

• Highlights instances/cases of how pro/anti-competitive policies and practices affect consumers or producers

• Findings to be used in ‘competition advocacy’ with support of key SHs

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THANK YOU!Rijit Sengupta

rsg@cuts.orgwww.cuts-ccier.org

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