competition law definition and scope dr. a.k. enamul haque professor of economics united...
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Competition LawDefinition and ScopeDr. A.K. Enamul HaqueProfessor of EconomicsUnited International University
• Goal:
• Ensure fair price of products and services
• Improve efficiency in production
• Encourage innovation
All competitive prices areAre fair prices
Why competition law?
Problems of non-competition!• Collusion – sellers collude to raise price
• Abuse of dominance – big market share holders use various measures to create entry barriers−Predatory pricing−Exclusive deals−Tying −Conditional sales−Denial −Resale price control
Problems of non-competition• Bid rigging
• Any type of entry barriers
• Restriction on prices
• Merger to reduce competition
• Acquisition to reduce competition
• Combination
Bangladesh Competition Law 2012• Applicable on all commercial
transaction – includes sale, supply, production, distribution and also storage
• Excludes−National security related goods and
services −Sectors not open for private investment
CCB• To establish a Competition Commission in
Bangladesh through a Gazette notification
• A statutory body with quasi-judicial powers
• 1 Chairperson
• Maximum 4 Members−Economics, Market Expert, Public
Administration and Law−No two from one area−Each with at least 15 years of experience in
relevant area.
CCB continues• Chairperson is the CEO
• Tenure for 3 years with 1 renewal possibilities
• Up to 65 years
Responsibilities of CCB• To promote competition and remove
anti-competitive behaviour• To investigate upon receiving
complains or on suo motto.• To sue • Approve merger and acquisition• Training and awareness• Establish standards related to
competitive behavior• Research, seminar, etc.• Protect consumers’ rights
CCB powers• Civil Procedure 1908
• Penal Code 1860 section 196, 193, 228
• It is a civil court
CCB - authorities• Anti-competitive agreements
−To create monopoly, cartel, through collusion−Price fixing−Bid rigging−Restricting innovation−Distribution of market geographically
• Abuse of dominance−Combination−Exclusive sale or distribution agreement−Denial −Fixing resale price
CCB authority• Predatory pricing
• Creating restriction for entry
CCB process• Investigation based on
−Complains or on its own
• Can pass interim order effective up to 60 days with provision to increase for another 60 days−Appeal is allowed within 30 days
CCB • Punishment
−Deter −Fine up to 10% of the average turnover of
past 3 years−In case of cartel
• 3 times the profit or 10% of the average turnover of past three years (whichever is greater)
−Additional fine for non-compliance• 1 lakh per day• And or 1 years of jail sentence
−Authority to order split/de-coupling of a company
Limits• To deal with issues which are
affecting competition
• Can investigates matters outside Bangladesh which might affect competition in Bangladesh
• Appeal within 60 days−With 25% deposits−In a Session Judge Court