Competition bill for public comment
Stabroek News
June 25, 2004
The government, in seeking to promulgate competition and fair trading practices has released proposed legislation for comments and suggestions.
The 39-page "Competition and Fair Trading Bill" seeks to "promote, maintain and encourage competition and enhance economic efficiency in production trade and commerce" in Guyana while prohibiting anti-competitive business conduct which distorts competition or constitutes an abuse of a dominant position in the market. The Bill also seeks to promote the welfare and interest of consumers.
According to the explanatory memorandum of the bill, the proposed legislation seeks to establish a national competition commission which will have the power to investigate potential abuses, prohibit anti-competitive agreements or activities and levy fines. The Bill also proposes to grant powers of investigation and sanction to the Caricom regional Competition Com-mission on cross border competition as described in Article 174 of the Revised Treaty of Chaguaramas.
Clause six of the bill sets out the function of the Competition Commission which includes keeping under review commercial activities to ascertain practices which may adversely affect the economic interests of consumers; order investigations in relation to the conduct of businesses to determine whether any company is engaging in business practices which contravene the legislation; to take action as it considers necessary on the abuse of a dominant position by any enterprise; eliminate anti-competitive agreements and advise the minister on matters relating to the operation of this new law.
Part III of the proposed legislation sees to make void and prohibit any agreements between enterprises or concerted practices of enterprises or decisions of associations of enterprises which prevent or distort competition in a market.
This provision will not apply to any agreement or category of agreements which contribute to the improvement of production or distribution of goods or services or the promotion of technical or economic progress while allowing consumers a fair share of the resulting benefit.
Clause 18 seeks to prohibit exclusionary provisions in an agreement to any person. The bill defines an exclusionary provision as one where an agreement is entered into between persons, any two or more of whom are in competition with each other, and the effect of the provision is to prevent, restrict or limit the supply of goods and services to, or the acquisition of goods or services from any particular person or class of persons either generally or in particular circumstances or conditions, by all or any of the parties to the agreement, or, if a party is an enterprise, by an interconnected enterprise.
Clause 20 prohibits abuse of a dominant position in a market place and defines dominant position as where a company by itself or an interconnected company occupies a position of economic strength as will enable it to operate in the market without effective constraints from its competitors or potential competitors.
A company will be deemed to abuse a dominant position if it impedes the maintenance or development of effective competition in a market.