Competition & Consumer Protection REGIMES in Select MENA countries

RIJIT SENGUPTA

INTERNATIONAL CONFERENCE FOR OIC MEMBERS ON COMPETITION ISSUES

21-22 NOVEMBER 2011, ISTANBUL

COMPETITION & CONSUMER PROTECTION REGIMES IN SELECT MENA COUNTRIES

OUTLINE OF PRESENTATION

• Background• Countries• Consumer Protection Regimes: Overview• Competition Regime: Overview• ACPs• Key Emerging Issues for Future• Way Forward

Competition & Consumer Protection Regimes in Select

MENA Countries2

BACKGROUND

• Why this region?- Dearth of background information - Unfamiliar territory for CUTS (curiosity)- Possibilities for comp reforms and consumer

welfare

• Mission ObjectivesUnderstand the prevailing state of the

competition policy & Law (CPL) and consumer protection regimes in seven MENA countries & highlight key issues for action


MENA Countries3

COUNTRIES

ALGERIA, EGYPT, JORDAN, LEBANON, MOROCCO, SYRIA & TUNISIA


MENA Countries4

CONSUMER PROTECTION REGIME: INTRODUCTION

• Historically, an important issues in the region• Consumer issues dealt under the precincts of

price control, consumer subsidies, quality, etc.• Consumer protection received renewed interest

under the Euro-Med agreements• Explicit mention of consumer protection in some

agreements (Algeria, Egypt, Lebanon & Tunisia)• Syria adopted one with German TA


MENA Countries5

CONSUMER PROTECTION REGIME: LAWS & AGENCIES

• Current State of Laws & Govt. Agencies


MENA Countries6

CONSUMER PROTECTION REGIME: INTERESTING FEATURES

• Govt a major economic player in the market• Consumer Protection Agencies face resource

constraints, and lack adequate powers• Consumer protection issues not well-

integrated in the national development policy• Consumer organisations need to be

strengthened (Consumer Movement) • Cons Orgns gets most support from Govt.

Deptt.• Limited interest of media on consumer issues• Donor interests and support necessary


MENA Countries7

COMPETITION REGIME: INTRODUCTION

• Introduction- Important trading partner of Europe- Trade liberalisation – role of external drivers- Euro-Med Agreement (Comp in EMFTA)- Competition provisions aligned with EC- Advances in business environment reforms

• Policy environment for competition- Govt still a major player in economic sphere- Certain policies affect competition- Political interference in enforcement - In some countries, govt is supportive (funds++)


MENA Countries8

COMPETITION REGIME: LAWS & AGENCIES


MENA Countries9

Country Law (Y/N)

Legislation Year of Enactment

Competition Agency (CA)

Since

Algeria Yes Competition (antitrust, unfair competition), Law No.10-05, as amended, 2010(Replaced the Competition Ordinance of 2003 and 2008)

2010 Competition Council 2008

Egypt Yes Law No. 3 of 2005, Law on theProtection of Competition and the Prohibition of Monopolistic Practices

2005 Egyptian Competition Authority

2005

Jordon Yes Competition Law No. 33 of 2004 (Provisional Law in 2002)

2004 Competition Directorate 2002

Lebanon No Draft Law of 2007, proposed by the Ministry of Economy and Trade

Still pending

N.A. N.A.

Morocco Yes Competition (Antitrust), Law No. 06-99, 2000

2000 Directorate of Competition and Prices & Competition Council

2001

Syria Yes Competition and Anti-Trust Law (Law No 7/2008)

2008 Competition Commission of Syria

2008

Tunisia Yes Law No 91-64, of 29 1991, on Competition And Prices

1991 Directorate General for Competition and Economic Surveys & Competition Council

1991

COMPETITION REGIME: INTERESTRING FEATURES

• Stakeholders’ interest & Linkages

• Governance Issues in competition enforcement- Decision-making- Appointments- Reporting Mechanisms- Allocation of Funds Competition & Consumer

Protection Regimes in Select MENA Countries

10

Stakeholder Level of Engagement

Mode of Engagement

Academia Moderate to High In some countries like Egypt, Jordan and Morocco the mode of engagement with academia was fairly systematic

Regulators High Well-designed process of engagement driven by:i) Legislative provisions and (ii) Operational arrangements

Business Low Not much engagement reported, except occasional seminars and exchanges (Egypt, Syria, Jordan)

Civil Society Low to Moderate Some countries have representatives from consumer organisations on the Board. Not much further to enable cooperation with CSO.

ANTI-COMPETITIVE PRACTICES (ALLEGED & RECORDED)

Country Case Description

Algeria Abuse of dominance involving match manufacturer, SNTA Abuse of dominance by the National Electronic Industry (ENIE)

Egypt Film distribution case (report submitted) Cement sector Cartel (price-fixing)

Jordan Predatory pricing in Aluminium profiles Allegation of abuse of dominant position in Cellphone (Zain)

Lebanon Alleged cartel in imported food and vegetables

Morocco A possible cement cartel (price-fixing)

Tunisia Abuse of dominant position in poultry (Poulina)


MENA Countries11

A snapshot of some anti-competitive practices gathered during the mission

SUMMARISING THE KEY ISSUES

• Need for greater importance to Consumer Rights (Human Rights perspective)

• Strengthening Consumer Protection Agencies (CPA)

• Greater institutional autonomy & powers to agencies

• Tight penalties for violators of laws• Capacity building programmes for CPAs & CAs• A consumer movement/network in the region• Greater stakeholder awareness & engagement• Mobilising media interests on consumer issues


MENA Countries12

WAY FORWARD

• Political buy-in and public support for competition and consumer reforms• Refinement of policies and legislations• Institutional reforms in agencies• Enhancing interest of young professionals

(University courses, Research programmes)• Strengthening CSOs engagement (network)• Mobilise attention of development partners• Integration into regional

legislations/processes


MENA Countries13

Shukran, Merci, Teşekkür Ederim

Rijit [email protected]


MENA Countries14

Competition & Consumer Protection REGIMES in Select MENA countries

Documents

Transcript of Competition & Consumer Protection REGIMES in Select MENA countries