Challenges in Introducing Competition Law in Cambodia

1
Challenges in Introducing Competition Law in
Cambodia

• By
• Om Dararith
• Director of Legel Affairs Deparment
• Ministry of Commerce, Cambodia

2
Content

• Preparation of Competition Law in Cambodia
• Content of Cambodian Draft Competition Law
• Legislation process in Cambodia
• Possible Challenges

3
Preparation of Competition Law in Cambodia

• 1. May 2005 Completion of 2 studies on state of
  competition in Cambodia, sponsored by UNCTAD and
  EU MULTRAP Project
• - Economic mapping of Cambodia an overview of
  the Economy and the Nature of Economic
  distorsions by Goeffrey Sumner, EC Consultant.
• - Review of the Legal and Administrative
  Constraints on the Working of Markets in Cambodia
  by UNCTAD Consultant on Competition Law and
  Policy in Cambodia.

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Preparation of Competition Law in Cambodia (cont)

• 2. May 2005 Roundtable with government officials
  on the new policy framework for Cambodias
  competition law
• 3. May 2005 Roundtable with stakeholders on the
  formulation of a competition policy framework for
  Cambodia

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Preparation of Competition Law in Cambodia (cont)

• 4. June 2005 Establishment of Working Group on
  Competition Law and Policy by MOC, comprises of
  7 members
• 1 representative from Council of Minister
• 2 representatives from Ministry of Commerce
• 1 representative from Ministry of Justice
• 1 representative from National Bank of Cambodia
• 1 representative from Ministry of Economy and
  Finance

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Preparation of Competition Law in Cambodia (cont)

• 5. August 2005 Visit of 2 UNCTAD Experts on
  Competition law and policy
• To explore the state of competition in Cambodia,
  the stakeholders point of views on the need and
  impact of competition law and policy in Cambodia
  and to prepare a working program and schedule for
  the competition law and policy in Cambodia
• Meeting with different stakeholders
• Funding and development organisations World
  Bank, ADB, EC, France Embassy
• Government officials and the working Group on
  Competition
• Professional associations CAMFEBA, Phnom Penh
  Chamber of Commerce, French-Cambodian Chamber of
  Commerce, Phnom Penh Hotel Association) and
• Professionals Banks, legal consultant

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Preparation of Competition Law in Cambodia (cont)

• 6. January- March 2006
• -Draft Law on Competition by 2 UNCTAD experts
  Mr. Frédéric Jenny and Mr. Guy Charrier
• 7. March 2006
• - Present and discuss the first Draft with the
  Working Group on Competition.

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Review Draft Law on Competition by 2 UNCTAD
experts

• ADB expert, Mr.Kenneth Davidson
• Law professor in US and Abroad, 10 years
• Senior competition lawyer for the Federal Trade
  Commission (FTC), 25 years
• Resident Advisor to the Indonesian Competition
  Commission 2002-2003
• Advisor to other Competition Agencies and NGOs,
  over a 20 year period
• Creating Effective Competition Institutions
  Ideas for Transitional Economies available on
  www.kennethdavidson.com

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Guiding principles

• Written in plain language to be understood by
• Government officials
• Member of Parliament
• Competition investigators and judges
• Producers and consumers.
• UNCTAD draft requires prior knowledge of
  competition law and economics that does not exist
  in transitional economies.

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I. Structure of the Draft Law
Chapter Content Article
I Objectives 1 to 3
II Lawful and Unlawful practices 4 to 15
III Office of Investigation and Prosecution 16 to 19
IV Competition Court 20 to 22
V Conduct of Competition Court 23 to 24
VI Orders of Competition Court 25 to 27
VII Appeals to the Supreme Court 28 to 29
VIII Obligations of Government Agencies 30 to 34
IX Penalties 35
X XI Transitional and Final Provisions 36 to 37
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II. Main Functions
Function Chapter Content
Legal Framework I Objectives
II Lawful and Unlawful practices
Institutional Aspects III Office of Investigation and Prosecution
1 - Investigation IV Competition Court
2 - Prosecution V Conduct of Competition Court
3 - Court-like Decisions VI Orders of Competition Court
VII Appeals to the Supreme Court
IX Penalties
Competitive Assessment VIII Obligations of Government Agencies
Other X XI Transitional and Final Provisions
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Legislation process
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Possible Challenges

• Adequate capacities building (Regulator, Policies
  maker and expert)
• Consumer group and the media ( So as to generate
  awareness and support among the wider public for
  the adoption and implementation of Competition
  Law and Policies
• The business to ensure their compliance with the
  Law and Policy

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Challenges Cont

• Lack of resources and training institution
• Lack of public and private participation
• Lack of information accessible
• Limited of small and medium enterprises and those
  are so small
• Politic influence

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Institutional Options
Investigation Unit
Prosecuting Unit
Court-like Decisions
Independent Agency
Non Independent Agency
New Court
Existing Court
A Independent Agency Director of Investigation New Court / Chamber
B Independent Agency Director of Investigation First Instance Court
C MOC or other Department First instance Prosecutor First Instance Court
D MOC or other Department New Prosecutor Unit New Court / Chamber
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Thank you for your attention