Day 1 Intro to CCP and Competition Law in Pakistan
Day 2 Presentation 2 Role of stakeholders in promoting competition and consumer protection reforms
1. Important stakeholders for
promoting competition and
consumer protection
reforms
Ahmed Qadir, Office of InternationalAffairs
Competition Commission of Pakistan
Competition
and
Consumer
Protection
Consultations
10-14 August
2015, Istanbul
2. Competition
Agency
The institution, established by the competition law,
tasked with enforcement
The decisive factor in establishment of competition culture
Expected roles
Effective enforcement of competition law;
communication with consumers/other stakeholders
Activities aimed at promoting competition culture and
awareness
undertake competition advocacy
Essentials for success
Subject knowledge and skills,
human and financial resources
functional autonomy
Good interface with complementary institutions
4. Policymakers
Policies generally made at cabinet level and
endorsed by parliament
Policy makers- government officials (ministers)
who make policies together with the MPs
Expected Roles
Lay out conducive policy and legal frameworks
Release resources for functioning of institutions
Monitoring and accountability
Essentials for success
Appreciation of benefits from competition and
consumer protection reforms
Capacity to implement policies
5. Getting the
government
and
politicians
involved
Why government?
They make important decisions so
necessary to ensure that CA’s views are
duly considered
CA has a very important role to counter
“vested interests” lobbying for their
benefits
Why politicians?
They make important decisions about CA
resources
6. Engaging
with
government
bodies
A CA must be able to show that
competition provides significant
benefits through greater choice, lower
prices, better quality of goods and
services.
Competition provides the incentive for
firms to be more efficient and
innovative (raise productivity across the
economy)
7. Engaging
with
government
bodies
CA must be able to show it is not a
threat…
…it is on the same side…
…that’s its advice is based on sound
analysis, clearly presented, with the
focus on the consumer
Diplomacy, inter-personal skills, EQ, and
persuasion help immensely
8.
9. What’s the
message to
government
bodies?
Some competitive effects to consider…
Does the (proposed) intervention affect the
possibility of entry and exit in a market? e.g.,
granting exclusive rights to supply, limiting the
number of suppliers, or significantly raising the
costs for new firms entering the market
Does it affect the nature of competition between
firms, either through direct restrictions or by
reducing the incentives to compete?
Does it affect consumers? Can they exercise
choice?
11. Engaging
with
Parliament
Parliamentary committees need to be
treated with utmost care. Do not
appear superior or condescending!
Not all committee members will share
your views
Don’t make promises that are difficult
to keep
Don’t make any statement people will
remember forever!
12. Consumer
Protection
Authority
Institution with legal backing for consumer welfare
interest
Expected Roles
Effective enforcement of consumer law;
Establish linkages with other consumer movements
Promotion general awareness about consumer issues
Advocacy with relevant Ministries
Essentials for success
Subject knowledge and skills,
human and financial resources
functional autonomy
Good interface with complementary institutions
13. CivilSociety-
Consumer
Organisations
Refers to voluntary social organisations and institutions
that advocate for rights of consumers
Expected Roles
Watchdogs (eyes and ears) for competition and consumer
authorities
Awareness generation on competition and consumer issues
Mobilising consumers voice on need for protection
Advocacy and pressure on competition and consumer
protection reforms
Essentials for success
understanding on competition and consumer issues;
Structures and capacity for interaction with various
stakeholders
Support from development partners
Recognition by the relevant authorities
14. Academia
University and other research institutions
Expected Roles
Policy research on competition and consumer
policy issues
Training courses on competition and
consumer issues for human resource
improvement
Capacity building programmes for officials
Essentials for success
Acceptance of competition and consumer
issues into the curriculum
Knowledge of competition and consumer
issues by researchers
15. Sector
regulators
Regulatory authorities established by other
sector specific legislation
Expected Roles
Tell their respective sectors what to do
Work with CA to promote competition in their
respective sectors
Make decisions that have a bearing on competition
Protect consumer interests in their sectors
Conditions Precedent
Resources to carry the tasks
Good legal framework
Good interface with competition and consumer
authority
16. Sector
regulators
There could, eventually, be quite a few
of these in existence.
The important ones: banking &
securities, telecom, energy, services
such as hospitals and waste
management.
What works well are regular meetings
for liaison purposes and memoranda of
agreement.
17. Business
Regulated entity hence has big role to play
Expected Roles
Competing fairly and avoid consumer violations
Being sources of information for competition and
consumer authority
Business associations promoting understanding on
competition among members (firms)
Associations are not conduits for anti-competitive
behaviour
Conditions precedent
No regulatory capture
Competitive neutrality
Acceptance of competition reforms by (big)
businesses
18. Media
All avenues of communication with general public
(print, electronic, social etc.)
Expected Roles
Promote greater public awareness of issues
Awareness on institutions and legal framework
Hint on possible anticompetitive areas and consumer
violations
Constructive criticism
Conditions precedent
Availability of trained reporters
Capacity building courses for media
Willing contributors (articles, reports, etc.)
Good interaction with institutions (press releases etc.)
19. Legal
Fraternity
Legal practitioners (for business and competition
agency) also carry a heavy burden
Expected Roles
educate clients on compliance mechanisms
Help judiciary establish case laws
Ensure careful enforcement of laws by guarding
against carelessness
Help identify loopholes in the administration system
Conditions precedent
proper understanding of the provisions of the law, and
its overall goal
Training programmes for the lawyers
Quick justice delivery system
20. Judiciary
The buck stops at the judiciary, hence
determines efficiency of system
Speed of judicial review, however, is a
matter of concern in many countries
Expected roles
Efficient disposal of related trials/cases
Establish case laws
Essentials for success
knowledge on the subjects
Conducive platform for presiding cases (e.g.
different from common criminal cases)
21. Conclusions
– what the
CA can do
Stakeholders need to understand and adequately
perform their specific roles.
Stakeholder needs training.
Programmes on awareness of competition and
consumer issues and their benefits critical for
success.
Stakeholders need to complement each other
rather than step on each other’s toes.
Resource constraints major challenge; hence
development partners are necessary.
Advocacy key to buy-in; important to establish a
cadre of advocates through training programmes
22. Confidence,
credibility,
resources
The more the CA inspires the
confidence of Ministers, MPs,
government bodies, parliamentary
committees, etc., the more credibility it
creates.
Credibility can be leveraged for more
resources to carry on with its important
work.
23. Final
Thoughts
An authority will ultimately be judged
on its perceived VALUE to the
economy
Important to demonstrate this value
quickly
keeping focused on the ’main game’, i.e., key
priority issues and avoiding easy but low[er]
priority issues is essential.
Communicating about what one does is also
important helps get support