 |
|
| Author |
 Topic  |
|
|
Momodou
Denmark
11734 Posts |
 Posted - 07 May 2010 : 21:41:01
|
Is this commision an extension of the former Price Control Department?
--------------------------
Competition Commission Ensures Fair-play
By Binta .A. Bah & Kumba .M. Bah
Officials of the recently launched Gambia Competition Commission (GCC) said their mandate is to ensure fair-play among business entities as well as between businesses and consumers in the country.
The Commission was established in 2001 by an Act of Parliament under the Ministry of Trade and Employment with the mandate to serve as a business watchdog in a bid to protect consumers’ interests, while ensuring fairness in the market.
Speaking at a press conference aimed to popularise its mandate, GCC’s chairman, Alhagie Tamou Njie said his institution is here to make sure that an efficient service is delivered with a variety of choice, for people to have the value of their money on the goods and services procured.
This will instill fair and effective competition among business entities, and their mandate covers both private and public investments, he said.
Omar Jobe, a Commissioner said the Commission is a body that can sue and be sued on the execution of its functions.
"The commission functions either on its own or on receipt of complaints, inquire into suspected breaches of the prohibitions of restrictive agreements and also monitor compliance with penalty or remedy," he said.
He said the Commission can gather and obtain information by issuing a notice to an enterprise or individual believed to be in possession of relevant information or document.
The Commission’s decision is binding on parties, he noted, adding that parties, too, could appeal against the Commission’s decision at law courts.
Jobe said since the business market continues to thrive, unfair business practices such as collusive agreements, bid rigging, restrictive agreements of monopoly and merger situation are looming, thus, need to be closely monitored.
Source: Dailynews
|
A clear conscience fears no accusation - proverb from Sierra Leone |
|
|
Momodou
Denmark
11734 Posts |
Posted - 10 May 2010 : 14:30:15
|
Gambia Competition Commission Acts
A competition regime would have two key instruments: Competition policy and competition law (the law being a subset of the policy frame word). My role this morning is to take you through "salient points of the Gambian competition law" entitled:
An act to promote competition in the supply of goods and services by establishing a commission, by prohibiting collusive agreements and bid rigging, by providing for investigation and control of other types of restrictive agreements and of monopoly and merger situations, by promoting understanding of the benefits of competition for other matters connected therewith.
This Act, segregated into eleven (11) different parts, sixty-one (6)} sections and two (2) schedules was enacted by the Gambia National Assembly in 2007 and assented to by the president on the 5th day of October 2007.
This provided for the establishment of a structure called:
(1) The Gambia competition Commission:
1. The commission is a body corporate with perpetual succession and a common seal
2. The commission may:
Sue and be sued in its corporate name
Enter into contracts and acquire, hold and dispose of property; and
so far as it is possible for a body corporate to do so, exercise the rights, privileges and incur the liabilities and obligations of a natural person of full age and capacity.
The commission comprises five members. All of the members are appointed by the president of the republic after due consultations with the public service commission. The Act further provides that the president shall appoint one of the commissioners as chairperson of the commission.
Commissioners serve for a term of at least three years but not more than five years. Commissioners may on the expiry of their term be reappointed
The terms of appointment and means of removal of commissioners are specified by the Act.
(ii) Independence of the commission:
The Act further provides: section 17{1} that except as otherwise provided by this section, the commission shall not be subjected to the direction and control of any person or authority.
Section 17{2}, notwithstanding the provision of subsection {1}, the secretary of state may, subject to subsection {4}, require the commission, by order
{A} Not to carry out an investigation in respect of an enterprise specified in the order
{B} To discontinue an investigation it has started in respect of an enterprise specified in the order
{C} Not to impose any penalty or other remedy, unless it has been approved by the secretary of state
The secretary of state shall not make an order under subsection {3} unless he or she is satisfied that the action specified in the order is necessary and required:
{A} in the interest of national security or
{B} to comply with the Gambia’s international obligations
Finally, the Act requires the Competition Commission to publish:
{A} guidelines on the economic and legal analysis to be used in determining cases under this Act and
{B} procedural rules specifying the various procedures it intends to follow when carrying out its functions under this Act.
What then are the functions of the GCC?
{III} Functions of the Competition Commission:
1. Either on its own or on receipt of complaints inquires into suspected breaches of the prohibitions of restrictive agreements.
2. Undertake investigations.
3. Authorize gathering of information required for assessment of each case on the basis of the powers of investigation conferred by part vii.
4. Conduct as required, any hearings with interested persons or parties.
5. Publish decisions on each case where it has made a determination in respect of restrictive agreements subject to prohibition or concluded an investigation including cases where no penalty or remedial action is imposed.
6. Determine what penalty or remedy is appropriate.
7. Monitor compliance with a penalty or remedy.
8. Publish and otherwise promote and advertise the provisions of the Act and activities of the commission.
9. Advise on any action taken or proposed to be taken by the state or any public body that may adversely affect competition in supply of goods and services.
10. Act as an advocate for competition in the Gambia.
11. Undertake general studies on the effectiveness of the competition in individual sectors of the economy.
12. Collect information for the performance of the commission’s functions
13. Perform other functions imposed by legislation.
{IV} Powers of the commission: Section 39 {1} through {3} specifies the powers of the commission with respect to:
Gathering and obtaining information by issuing a notice to an enterprise or individual believed to be in possession of relevant information or document.
Entry into premises where documents and or information relating to an investigation are believed to exist.
Entry into and search premises to retrieve information and or documents relevant to a case under investigation. A warrant issued by a magistrate or judge is required in latter two situations.
The rules and procedures to be followed in the exercise of powers vested by the law to the commission are provided for in both the Act and the accompanying rules and guidelines.
The commission is further required by the Act to give the 2007 Act and any rules, procedures and guidelines the widest possible publicity for the better education and understanding of the Gambian public.
Part VI of the Act deals with Restrictive Business Practices such as:
1. Restrictive Horizontal Practices Like: price fixing including cartelization, market sharing or allocation and collusive tendering {firms agree, in advance, who will submit the winning bid on tender. Forms of collusive tendering include bid suppression, cover bidding and bid rotation} etc.
2. Main Vertical Restraints include: Territorial exclusive agreements; Reciprocal exclusivity agreements; Resale price maintenance; Tied selling; Transfer pricing {over or under invoicing}; below cost sales {dumping}, Refusal to deal.
The competition Act in section 25and 26 seeks to regulate such collusive anti competitive business practices
2 Prohibiting Collusive agreement section 25:
{1}A provision of an agreement by virtue of which it is a collusive agreement is prohibited and void as defined by section {2}
{2} An agreement is a collusive agreement if:
{A} it is a horizontal agreement and
{B} it has the object or effect of preventing, restricting or distorting competition, in any way.
{i} Fixing the selling or purchase price of goods or services or
{Ii} Sharing markets or sources of supply.
Subsection {2} does not apply to an agreement where the only parties to an agreement are interconnected bodies.
2. Bid rigging section 26{1} A provision of an agreement by virtue of
Which it is a Bid Rigging agreement as defined by subsection {2} is prohibited and void.
{2} An agreement is a Bid Rigging agreement if it is a horizontal agreement between enterprises whereby
One of the parties to the agreement agrees not to submit a bid or tender in response to a call or request for Bids or tenders or
The parties to the agreement agree on the price, terms or conditions of a bid or tender to be submitted in response to a call or request for bids or tenders.
Section 28: A restrictive agreement subject to prohibition in all circumstances and any enterprise found after application of parts VII and VIII to be a party to such agreement is liable to
{A} A penalty or other remedy imposed by the commission in accordance with provisions of part IX and
{B} A civil action by any person who has suffered or may suffer loss or damage by virtue of the agreement.
3. Restrictive Agreements Subject to Investigation:
A horizontal agreement that is not a collusive agreement is subject to investigation by the commission if:
{A} Parties to the agreement together supply thirty per cent or more, or acquire thirty per cent or more of goods and services of any description; and
{B} The commission has reasonable grounds to believe that the agreement has the object or effect of preventing restricting or distorting competition.
A Vertical is subject to investigation if the commission has grounds to believe that one or more of the parties is or are in monopoly situation that is liable to investigation by virtue of section 31{2}
{A} Monopoly Situations Section 31{1} and 31{2}:
A monopoly is deemed to exist
{a} If thirty percent or more of those goods and services are supplied by one enterprise or
{B} If seventy percent or more of those goods or services are supplied or acquired by three or fewer enterprises.
A monopoly is subject to investigation by the commission if the commission has reasonable grounds to believe that the enterprise or enterprises are engaged in conduct that:
{i} Has the object or effect of preventing, restricting or distorting competition or
{ii} In any other way constitutes exploitation of the monopoly situation.
{b}Mergers
Where a merger exists, it is subject to investigation by the commission if:
{a} At least one of the parties to the merger situation carries on business in the Gambia or operates under the control of a body corporate incorporate in the Gambia
{b} Either
{i} Both of the parties to the merger supply or acquire goods or services of any description and will, following the merger together supply or acquire thirty percent or more of all those goods and services.
{ii} One of the parties to the merger alone supplies or acquires prior to the merger thirty percent or more of the goods or services of any description and
{c} The commission has reasonable grounds to believe that the creation of the merger situation has resulted or is likely to result, in a substantial lessening of competition within any market or markets for goods and services
33. {1} The secretary of state may make regulations prescribing measures relating to the control of mergers.
{2} The measures to be prescribed may include but are not limited to:
{a} Requiring partners to a merger to notify the commission of merger
{B}Imposing penalties including suspension of the implementation of a completed merger etc.
5. Promoting understanding of the benefits of competition:
The commission is required by the competition Act 2007 to engage in:
{i} Advocacy on competition matters.
{Ii} Public sensitization and education on competition matters and the benefits of the competition
{Iii} And serve in an advisory capacity to government on competition matters.
PROVISION FOR APPEALS FROM DECISIONS OF THE COMMISSION:
Section 56 clearly spelt out how business entities could seek redress. It states that: "All decisions and determinations of the commission except those made of a purely administrative nature and not directly relevant to any enterprise may be appealed against to the courts. Section 57 and 58{1} _ {11} provide the nature, scope and procedures to be followed by both the commission and the party or parties aggrieved by the commission’s decision.
In conclusion:
The competition commission wants to ensure that there is a level playing field for economic players to provide efficient services, wide variety of choice, value for money and quality goods and services whiles adopting the best available technology and investing in research and development to be innovative. The Gambian economy thrives on free market policies. Our mandate is economy wide and we will be working with sector regulators like PURA, Central Bank of The Gambia and GPPA to regulate competition in The Gambian economy.
Source: Dailynews |
A clear conscience fears no accusation - proverb from Sierra Leone |
 |
|
|
toubab1020
12312 Posts |
|
| |
Topic |
|
|
|
| Bantaba in Cyberspace |
© 2005-2024 Nijii |
|
|
|
Topic Locked
