Download Cross-Border Competition Issues & the 2002 Competition Act: An International View and more Slides Competition Law and Policy in PDF only on Docsity! Cross-Border Issues and the Competition Act, 2002 Docsity.com Cross-border competition issues • Most countries’ competition laws embody two basic principles: – Explicit or implicit exemption of RBPs with effects only in foreign markets. – The “effects doctrine” (jurisdiction over foreign RBPs with domestic effects) -- but difficult for LDCs to investigate and enforce their laws extra- territorially. Docsity.com Cross-border predatory pricing • Similar to dumping, but higher standard must be met – Cost standard excludes overheads – Market structure/ entry conditions/ recoupment standard • DSB decision in U.S. -- 1916 Act • India now the most active (ab)user of anti- dumping Docsity.com Barriers to import competition • Import cartels • Control of distribution channels by domestic firms • WTO Kodak-Fuji case: competition policy can be examined in dispute settlement for allegations of discrimination or nullification and impairment of concessions made in GATT and GATS. Docsity.com Competition Act 2002 • Sec. 32: clear statement of “effects doctrine” should undo ANSAC • But provision for injunction against imports in Sec. 33(2) could be self-defeating • Hard-core cartels now prohibited per se, but exemption for efficiency-enhancing joint ventures, without safeguards • Many technical criteria, but lack of expertise to implement them Docsity.com Discussions at the WTO • Working Group set up by 1996 Singapore Ministerial to study issues • Developed countries: – unwilling to control cartels or mergers having effects in foreign markets – unwilling to apply antitrust standards to antidumping – willing to extend only `voluntary’ cooperation to LDC authorities Docsity.com • Developing countries unwilling to take on fresh commitments in an unfamiliar area, with major resource requirements. • India opposed National Treatment • Consensus only on need for technical assistance and further study • Deadlock at Cancun (2003), Competition Policy formally dropped from Doha agenda by 2004 Framework Agreement. Docsity.com The Way Forward • Ongoing discussions at – OECD (Global Competition Forum includes non- members); Policy Framework for Investment – International Competition Network -- focus on merger review – Periodic reviews of UNCTAD Set and meetings of International Group of Experts Docsity.com