Competition Law And Bangladesh 6 1

Topics: Competition law, Consumer protection, Monopoly Pages: 18 (2653 words) Published: April 14, 2015
Competition Law and Bangladesh -6

ELW 203 ECONOMIC LAWS

Tariquzzaman Khan
FCA, FCS
Adjunct faculty, ICSB

1

Competition Law and Bangladesh -6
Concept of competition, Importance of Competition Law/Policy, Prerequisites for a Competition Policy, Restrictive Trade Practices, Competition and Consumer Protection, Mergers, Dominance, Resale Price Maintenance, Competition Law/Policy in Bangladesh, Bangladesh Competition Commission (BCC), procedure for investigation/ inquiry by the Monopolies and Restrictive Trade Practices Commission/Competition Commission relating to restrictive, unfair and monopolistic trade practices; globalization of market and consumer protection

2

Competition Law and Bangladesh -6
Concept of competition
Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply.

3

Importance of Competition Law/Policy
Economic benefits of competition;
Static Efficiency:Lower prices,Better quality,More choice
Dynamic Efficiency:Efficient allocation of resources
Management, processing and technological improvements
Need for competitive infrastructure;
INFRASTRUCTURE-Transport, Banking,Insurance
UTILITIES-Energy, Telecoms, water.
DISTRIBUTION-Large Distribution Chains, Global Importers
IMPORTANT SECTORS FOR LDCs:Tourism, Mining, Agriculture
Developing countries suffer most from anti-competitive practices; inadequate infrastructures-island, land-locked states
poor communications lead to segmented markets and local monopolies low capital formation-high interest rates and lack of entreprise culture lead to state monopolies & inefficiencies
assymetry of information-consumers unaware of rights
total lack of competition culture

4

Importance of Competition Law/Policy –(Contd.)
They need to be complemented by market-oriented reforms;

Deregulation and Privatization,FDI liberalization,Trade liberalization Gradual Implementation of Competition law
start with most harmful cartels, follow with merger control,then abuse of dominance prioritize scarce resources,focus on benefits for economy,FOR GENERAL CONSUMERS, incl. THE POOR
Build Credibility of Competition Authority
publish report,explain actions,seek to obtain a rating
get support of the media and public opinion,maximize visibility and make examples independence / credibility,show tangible results,get incremental budget,increase activities Conclusion:
Competition is not a luxury reserved fror the rich; It is a necessity for the poor Developing countries, and especially the poor, are those who suffer most from distortions created by anti-competitive practices.

The global trend of adopting competition laws and policies in developing countries and LDCs is an encouraging confirmation of the views expressed in this note.

5

Pre-requisites for a Competition Policy
The object of competition policy is to promote efficiency and maximize welfare. Therefore, the competition policy/law needs to have necessary provisions and teeth to examine and adjudicate upon anti-competition practices that may accompany or follow developments arising out of the implementation of WTO agreements. In particular, agreements relating to foreign investment,intellectual property rights, subsidies, countervailing duties, antidumping measures, sanitary and phytosanitary measures, technical barrier to trade and government procurement need to be reckoned in the competition policy/law with a view to dealing with anti-competition practices. The Committee on Competition policy and Competition law dealth with Pre-requisites for a Competition policy as follows:

Competition process is likely to run smoothly and thus lead to desirable results, only if several pre-requisites are met. Micro-industrial Government...
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