Role of Competition Advocacy in developing effective Competition Policy

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Role of Competition Advocacy in developing
effective Competition Policy

• A presentation by Manoj Pandey
• Additional Director General
• Competition Commission of India
• BRIC International Competition Conference
• Kazan
• 2nd of September, 2009

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COMPETITION ADVOCACY MEANING AND RELEVANCE

• Competition Advocacy has been defined as ..
  those activities conducted by the competition
  authority related to the promotion of a
  competitive environment for economic activities
  by means of non-enforcement mechanisms, mainly
  through its relationships with other
  governmental entities and by increasing public
  awareness of the benefits of competition.
  (Advocacy Working Group of the International
  Competition Network ).
• Competition Advocacy constitutes all those
  activities conducted by the competition/antitrust
  authorities relating to the promotion of a
  competitive environment through non-enforcement
  mechanisms.
• An important function for all Anti-trust/Competiti
  on Authorities, it aims at establishing
  meaningful relationships with other governmental
  entities and increasing public awareness about
  the benefits of competition.

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COMPETITION AUTHORITIES AND ADVOCACY

• Advocacy acts as complement to law enforcement
  activities of Competent Authorities.
• Advocacy helps in spreading public awareness and
  education and helps to promote overall economic
  development.
• Competition Policy goes beyond mere Competition
  Laws.
• It encompasses in itself not only Competition
  Laws but also set of policies advocated by
  Competition Agencies.

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COMPETITION AUTHORITIES AND ADVOCACY -CONTD.

• The Competition Authorities must through a
  sustained process of Competition Advocacy
  influence the government policies to lower
  barriers to entry, promote de-regulation and
  liberalisation of trade policies.
• For effective competition policy through
  competition advocacy, the competition agencies
  must engage in task of
• Convincing authorities to abstain from adopting
  anti-competitive measures.
• Making government entities, the judiciary, and
  all stakeholders more familiar with the benefits
  of competition.
• helping regulatory agencies in their tasks in
  tune with Competition Policy.
• formulation of economic policies of countries to
  ensure that competition in the market is not
  affected adversely.

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COMPETITION ADVOCACY AS A TOOL TOWARDS EFFECTIVE
COMPETITION POLICY

• The Competition Advocacy of agencies must aim at
  establishing its credibility among the public
  and private sectors.
• The Competition Advocacy must try to minimize
  unnecessary government intervention in the
  marketplace .
• All stakeholders must know how competition
  benefits an economy, and must have confidence in
  the Competition Agency as an advocate for sound
  Competition Policy.
• Competition Advocacy helps in building a
  Competition Culture.

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COMPETITION ADVOCACY AND COMPETITION CULTURE

• The aspects of promotion of Competition Culture
  through Competition Advocacy may include
• publication of competition agency decisions.
• publication of pamphlets and information booklets
  for the general public.
• publication of market studies and of technical
  papers.
• regular communications with the press and
  electronic media.
• Spreading awareness about the role Competition
  Policy can play in promoting competition through
  seminars, conferences, workshops.

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ADVOCACY AS PART OF COMPETITION POLICY

• Enforcement and advocacy are not mutually
  independent activities but reinforce each other.
  
• Enforcement is strengthened by an active
  advocacy, and advocacy is less effective in the
  absence of enforcement powers.
• Competition Advocacy and Competition Enforcement
  are interdependent and not exclusive.
• Effective Competition Policy can come through
  practice of sound Competition Advocacy .

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ADVOCACY AS PART OF COMPETITION POLICY-CONTD.

• Success in Competition Advocacy has benefits for
  enforcement as well since
• there will be voluntary compliance with the
  Competition Laws.
• willing co-operation in course of enforcement
  actions.
• policy makers will support the acts of the
  Competition Bodies through resources.
• Credibility cannot be gained through advocacy
  alone and it must be sufficiently backed by
  enforcement of Competition Law.

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FUNDAMENTALS OF COMPETITION ADVOCACY

• For development of effective Competition Policy
  through Competition Advocacy, Competition
  Agencies must have structural and operational
  independence as has been studied by ICN.
• While structural independence must be ensured ,
  operational independence must also be guaranteed
  for effective competition advocacy.
• Enough funds must be at the disposal of
  Competition Agency for both advocacy and
  enforcement related functions.

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ADVOCACY IN EMERGING ECONOMIES

• Competition Advocacy is critical in developing
  and emerging economies .
• Competition/Anti-Trust agencies in developing
  countries should be relatively more active in
  competition advocacy.
• Advocacy must be in the areas that are
  economically important and visible.
• The agency must undertake activities in which it
  has a reasonable chance of success.

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COMPETITION ADVOCACY IN CA, 2002

• Section 49 of Indian CA contains specific
  provisions of competition advocacy.
• Central Govt. or State Govt. while formulating
  may make a reference to the Commission, and the
  Commission shall within sixty days give its
  opinion .
• The Commission is also empowered to take suitable
  measures for the promotion of competition
  advocacy on its own.

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COMPETITION ADVOCACY - EFFORTS OF INDIAN
COMPETITION AUTHORITIES

• The Commission has been in past engaged in
  undertaking advocacy with ministries, regulators,
  state governments and other authorities.
• The Commission has given its opinion on the draft
  Indian Post Office (Amendment) Bill, 2007, the
  Warehousing (Development and Regulation) Bill,
  2006 , the Shipping Trade Practices Bill, 2007
  and the Petroleum and Natural Gas Regulatory
  Bill, 2005.
• The Commission has also given its views on
  regulatory policies and practices in the fields
  of banking, telecommunications and intellectual
  property rights.
• Presentations on Competition law and policy to
  Ministries .
• Training workshops for senior officers of Central
  and State Govts.

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• THANKS
• Indian Competition Act, Rules and Regulations are
  available at website
• www.cci.gov.in