Presentation at Conference on Principles of Progressive Competition Law
66
Principles of Progressive Competition Legislation July 15, 2011 Daniel Fitzpatrick
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These are the slides Daniel Fitzpartrick used at a conference on the principles that should be contained in a progressive competition law, given in July 2011 in Baku Azerbaijan. Slides have been added to enhance its impact as a webinar. The conference was sponsored by jointly by the Entrepreneurs Development Foundation and the ACT Project, which is funded by both USAID and the Azerbaijani government. Slides in Azerbaijani, as well as the audio recording of his translator should be available soon. The opinions expressed in this webinar are not necessarily those of USAID or the EDF
Transcript of Presentation at Conference on Principles of Progressive Competition Law
Principles of Progressive
Competition Legislation
July 15, 2011Daniel Fitzpatrick
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From: Flickr Creative Commons by Jeramey Jenenne
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From: Flickr Creative Commons by Mohammad Jangda
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Geographic
and
Product
Markets
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Market Power
and
Dominant Postion
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From: Flickr Creative Commons by Horstman42
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Image: Pita Fitzpatrick
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DRAFT COMPETITION CODE
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Criteria for Principles1. Easily understood.
2. Difficult to refute.
3. Sufficiently directive.
4. Reflective of international best practices.
5. Reflective of the circumstances in Azerbaijan.
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Principle 1 (The Clarity Principle)
The Competition Code should:
Be sufficiently clear and understandable as to give
companies in Azerbaijan a reasonable chance of
understanding which actions are likely to be legal and
which would not, even at the expense of doctrinal
perfection.
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Image: Graur Razvan Ionut / FreeDigitalPhotos.net
Image: Graur Razvan Ionut / FreeDigitalPhotos.net
Image: Graur Razvan Ionut / FreeDigitalPhotos.net
Image: africa / FreeDigitalPhotos.net
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Principle 1 (The Clarity Principle)
The Competition Code should:
Be sufficiently clear and understandable as to give
companies in Azerbaijan a reasonable chance of
understanding which actions are likely to be legal and
which would not, even at the expense of doctrinal
perfection.
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Principle 2 (The Enforcement Principle)
The Competition Code should:
Establish an independent enforcement agency
directly reporting to the President of the
country, operating on a transparent basis, and
headed by members who understand the benefits
and importance of free and open markets.
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Principle 2 (The Enforcement Principle)
The Competition Code should:
Establish an independent enforcement agency
directly reporting to the President of the
country, operating on a transparent basis, and
headed by members who understand the benefits
and importance of free and open markets.
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Option A
Perfect Competition Law
+
Ineffective Agency?
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Option B
Badly Written Competition Law
+
Dedicated and Skilled Agency?
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Principle 2 (The Enforcement Principle)
The Competition Code should:
Establish an independent enforcement agency
directly reporting to the President of the
country, operating on a transparent basis, and
headed by members who understand the benefits
and importance of free and open markets.
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Principle 3 (Investigator and Judge Principle)
The Competition Code should:
Establish that the investigative unit of the
enforcement agency is separate and independent
from the adjudication unit and are appointed on a full-
time, permanent basis.
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Image: Castillo Dominici / FreeDigitalPhotos.net
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Image: Castillo Dominici / FreeDigitalPhotos.net
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Image: Castillo Dominici / FreeDigitalPhotos.net
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Principle 4
(Even-Treatment Principle)
The Competition Code should:
Give the enforcement
agency a clear mandate to
advocate for an even
treatment by the
government amongst
competitors in both the
press and with the
Parliament. From: Flickr Creative Commons by Good Men Project
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Principle 4
(Even-Treatment Principle)
The Competition Code should:
Give the enforcement
agency a clear mandate to
advocate for an even
treatment by the
government amongst
competitors in both the
press and with the
Parliament. From: Flickr Creative Commons by Good Men Project
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Principle 4
(Even-Treatment Principle)
The Competition Code should:
Give the enforcement
agency a clear mandate to
advocate for an even
treatment by the
government amongst
competitors in both the
press and with the
Parliament. From: Flickr Creative Commons by Good Men Project
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Principle 5 (Market Confidence)
The Competition Code should:
Rely on opening markets to greater competition
rather than controlling prices (or profits) as the
primary means of protecting consumer welfare.
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Price Controls
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Price Controls
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Price Controls
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Principle 5 (Market Confidence)
The Competition Code should:
Rely on opening markets to greater competition
rather than controlling prices (or profits) as the
primary means of protecting consumer welfare.
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Principle 6 (The Horizontal Principle)
The Competition Code should:
Recognize that arrangements between competitors
(e.g., price fixing arrangements) are generally
illegal, with very few exceptions.
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Principle 6 (The Horizontal Principle)
The Competition Code should:
Recognize that arrangements between competitors
(e.g., price fixing arrangements) are generally
illegal, with very few exceptions.
Image: Castillo Dominici / FreeDigitalPhotos.net
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Principle 7 (The Leniency Principle)
The Competition Code should:
Establish procedures that provide legal protections to
cartel members who leave the cartel and decide to
provide evidence against the members of it.
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Principle 7 (The Leniency Principle)
The Competition Code should:
Establish procedures that provide legal protections to
cartel members who leave the cartel and decide to
provide evidence against the members of it.
Image: farconville /
FreeDigitalPhotos.net
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Principle 7 (The Leniency Principle)
The Competition Code should:
Establish procedures that provide legal protections to
cartel members who leave the cartel and decide to
provide evidence against the members of it.
Image: farconville /
FreeDigitalPhotos.net
Image: jannoon / FreeDigitalPhotos.net
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Principle 8 (Vertical Principle)
The Competition Code should:
Recognize that the various arrangements between
customers and suppliers (e.g., exclusive distributor
agreements) are generally legal, with very few
exceptions.
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Principle 8 (Vertical Principle)
The Competition Code should:
Recognize that the various arrangements between
customers and suppliers (e.g., exclusive distributor
agreements) are generally legal, with very few
exceptions.
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Principle 9 (Lite Merger Principle)
The Competition Code should:
Establish a system for preventing mergers of the
larger competing companies in a market, but avoids
undue administrative burdens when smaller
competitors wish to merge.
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Principle 9 (Lite Merger Principle)
The Competition Code should:
Establish a system for preventing mergers of the
larger competing companies in a market, but avoids
undue administrative burdens when smaller
competitors wish to merge.
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Principle 9 (Lite Merger Principle)
The Competition Code should:
Establish a system for preventing mergers of the
larger competing companies in a market, but avoids
undue administrative burdens when smaller
competitors wish to merge.
Image: ddpavumba / FreeDigitalPhotos.net
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Principle 10 (Clarity Principle II)
The Competition Code should:
Establish clear and comprehensive guidelines for
determining which companies hold a dominant
position.
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Principle 1 (The Clarity Principle)
The Competition Code should:
Be sufficiently clear and understandable as to give
companies in Azerbaijan a reasonable chance of
understanding which actions are likely to be legal and
which would not, even at the expense of doctrinal
perfection.
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Principle 10 (Clarity Principle II)
The Competition Code should:
Establish clear and comprehensive guidelines for
determining which companies hold a dominant
position.
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Principle 11 (The Reaction Principle)
The Competition Code should:
Aggressively respond to anti-competitive action
rather than requiring burdensome reports to prevent
abuse of dominant position.
Image: Sura Nualpradid / FreeDigitalPhotos.net
Image: puttsk / FreeDigitalPhotos.net
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Principle 11 (The Reaction Principle)
The Competition Code should:
Aggressively respond to anti-competitive action
rather than requiring burdensome reports to prevent
abuse of dominant position.
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Principle 11 (The Reaction Principle)
The Competition Code should:
Aggressively respond to anti-competitive action
rather than requiring burdensome reports to prevent
abuse of dominant position.
Image: Ambro / FreeDigitalPhotos.net
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Principle 12 (Private Action Principle)
The Competition Code should:
Give companies the right to protect their rights under
the Code through direct application to the court.
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Thank you!
The opinions of the presenter are
not necessarily those of USAID
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