Competition Policy is that policy whereby one attempts to address the degree of competition in a market place, with the aim to alter the outcome of that market in relation to businesses and consumers.
The need for competition policy emerged as economies recognized the developmental impact of increased competition in a market, generally caused through better pricing, increased quality of products or service and innovation.
According to Mahindra Ramdeen’s article entitled Competition Law and its Implications for T&T for the TCL Caribbean Conveyor (p. 22) “Competition policy is a government measure that directly affects the behaviour of enterprises and the structure of industry. Competition policy includes, among other things, policies that enhance competition in local and national markets such as liberalized trade policy, relaxed foreign investment and ownership requirements, privatization and economic de-regulation. Competition law, which is a subset of competition policy, can be defined as a set of rules and regulations governing the behaviour of firms and enterprises, ensuring that such entities do not abuse their dominant positions; restrict competition and or engage in anti-competitive behaviour.” The principle objective is to maintain and encourage competition as a vehicle to promote economic efficiency and maximize consumer welfare.”
Competition law aims to ensure a healthy degree of competition by preventing firms from engaging in strategies to limit competition. It is one of the key measures needed to support the proper functioning of markets in the fullest sense. It is the primary means of addressing a major form of market failure i.e. the detrimental exercise of market power. The proper understanding and implementation of competition law is the foundation for market expansion, especially as businesses seek to compete in international markets.
As Guyana strives to improve competition and fair trading both nationally and internationally, the Government of Guyana enacted the Competition and Fair Trading Act in 2006 to govern matters of this nature. This Act seeks to promote, maintain and encourage competition and to prohibit the prevention, restriction or distortion of competition and the abuse of dominant positions in trade; to promote the welfare and interests of consumers and to establish a Competition Commission for connected matters.
In support of the functioning of this Act, a Competition Commission was instituted. The Commission is hereby responsible for reviewing all commercial activities identifying those that adversely affect the economic interest of consumers; investigating such businesses which do not comply with the Act and conducting inquires in connection with any matter falling within the provisions of the Act.
The Commission will serve to advise the relevant Minister on matters relating to the operation of the Act as it thinks fit or as may be requested by the Minister. Information about the rights and obligations under the Act would be available for businesses, as well as guidance for consumers. Consumers’ interest is at the heart of this Commission, thus studies are to be undertaken and reports published which would speak to the issues affecting the interests of consumers.
For the purpose of enforcing compliance with the Act, the Commission will cooperate with the Community Competitiveness Commission and competition authorities of other Member States. This collaboration will also seek to detect and prevent anti-competitiveness conduct and exchange information relating to such conduct. The Commission may also by way of an application to the High court prosecute persons or business entities who contravene any of the provisions of the Act.
Given the extensive nature of consumer protection in the market place, this element of Competition Policy requires a comprehensive Consumer Affairs Bill, which has been prepared and which is soon to be tabled in Parliament. This legislation will add to the enforcement capacity of the Commission, extending it to the Competition and Consumer Affairs Commission.
The Commissioners of the Competition Commission represent four broad stakeholder groups: the private sector, the public sector, the legal profession and consumer representation bodies. The Chairman of the Commission is Mr. Ramesh Dookhoo from the Private Sector, whilst the other three Commissioners are Mr. Patrick Dial, representing consumers, Mr. Adrian Anamayah from the legal profession and Mr. Keith Burrows from the public sector..
Steps are currently being taken to establish the secretariat for the Commission which will be located at the National Exhibition Centre, Sophia. The Government of Guyana has provided G$14.8 million in the 2010 Budget to allow for the establishment of the secretariat. The process of staff recruitment has commenced.
In 2009, the Commissioners secured a G$143 million grant from the Caribbean Development Bank’s CART Fund programme to provide expert advice and technical capacity building to the Commission, its secretariat and the Judiciary.
The Commissioners would like to advise the public that the Commission is open for business and ready to receive complaints on unfair trading practices. Any individual, entity, organisation or association may make a complaint to the Commission where they believe that they have been treated unfairly in the market place.
Complaints to the Commission must be received in writing and addressed to the Chairman of the Commission, Ramesh Dookhoo, c/o its temporary secretariat – the National Competitiveness Strategy Unit, Ministry of Tourism, Industry and Commerce. When the Sophia Office becomes operational, the official address of the Commission will be:
Competition Commission
National Exhibition Centre
Sophia
Georgetown
Guyana’s Competition Commission open for business
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