Download Competition Commission of Mauritius - Competition Law - Lecture Slides and more Slides Competition Law and Policy in PDF only on Docsity! The Competition Commission of Mauritius Docsity.com Overview • What is competition policy? • The Competition Act 2007 • The Competition Commission of Mauritius • Guidelines – some tensions Docsity.com Why competition policy? • Free competition between private sector firms: – good for consumer (lower prices, better quality, more choice) – Strong evidence that competition enhances productivity, innovation, and thus economic growth • Price fixing and abuse of monopoly (among many other things) limit free competition • So we intervene - but we should not interfere with businesses’ commercial decisions lightly or arbitrarily • Independent agency, operating under clear legal framework, with well-defined rights • Protect competition (rivalry) not competitors! Docsity.com The Competition Act 2007 Docsity.com The Competition Act 2007 • Passed by Parliament 2007, partially proclaimed at present • Defines restrictive practices • Establishes Competition Commission • Repeals Competition Act 2003 – Simpler institutional structure – Stronger measures – Fewer exemptions Docsity.com Predatory pricing • Allegations of ‘predatory pricing’ involve prices being too low • Harm to competition if (and only if): – Temporary period of low prices drives out competitors – In subsequent period, less competition leading to higher prices (exit must be irreversible) – outweighing the former effect • Very hard to distinguish from normal ‘tough’ competition: competition authorities require very clear proof to intervene • Businesses should never be deterred from competing on price by worries that this might be seen as predatory Strong presumption in favour of low prices and tough competition Docsity.com Key principles in the Act • Effects-based judgment for all practices except cartels • Independence and division of powers • Transparency – public accountability • Transparency – natural justice and fairness • Right of appeal • State subject to the Act Docsity.com The Competition Commission Docsity.com Some early tasks • Commissioners to be appointed • Appointment of senior staff: – Lawyers – Business specialists – Economists • Drafting three sets of Guidelines • Competition Advocacy • Open for business – want to hear about problems • Launch first investigations! Docsity.com Guidelines: some tensions (for discussion) Docsity.com Legal and economic guidelines Predictability of decision- making (simple rules, per se prohibitions) Taking account of the specifics of the case (effects-based analysis, use of discretion) Docsity.com
