Ad-Hoc Expert Group on the Role of Competition Law
and Policy in Promoting Growth and Development
Geneva, 15 July 2008
Should Developing Countries Worry about Abuse of
Dominance?
by
Dr. Syamsul Maarif, S.H., LL.M
Chairman of Commission
for Supervision of Business Competition
Republic of Indonesia
The views expressed are those of the author and do not necessarily reflect the views of UNCTAD.
INDONESIAN
PERSPECTIVE ON ABUSE
OF DOMINANCE
Dr. Syamsul Maarif, S.H., LL.M
Chairman of Commission for Supervision of
Business Competition, Republic of Indonesia
Presentation Structure
¾ Introduction
¾ The significance of rules in abuse of
dominance for Indonesian economy
¾ Past experiences regarding abuse of
dominance
¾ Conclusion
Introduction (1)
¾ Historical
background of a competition
law created distinctive nuance in each
competition law system
¾ Indonesian competition law was primary
issued due to 1998 monetary crisis
¾ It promotes equal business opportunity for
every size of firms
Introduction (2)
¾ Prohibition of abuse of dominance
¾ Flexible concept of dominant position in
the law
The Significance of Rules In Abuse of
Dominance for Indonesian Economy (1)
¾ Indonesian open market of economy
The Significance of Rules In Abuse of
Dominance for Indonesian Economy (2)
¾ Transition to private participation
z
Old paradigm of monopolization by SOE
¾ Weak consumer protection
z
Ineffective consumer protection body
Past Experiences Regarding Abuse
of Dominance (1)
¾ Consistency to create equal business
opportunity
¾ PwC unjustifiable refusal to consent its
audit report to be incorporated into audit
report of its parent company audited by
smaller accounting firm (2003)
Past Experiences Regarding Abuse
of Dominance (2)
¾ Consistency to promote small and medium
firms
¾ Carefour unreasonable trading terms
imposed only to small and medium
suppliers (2005)
Conclusion
¾ Rules on abuse of dominance much more
important for Indonesia rather than in any
developed country:
z
z
z
To level up small and medium Indonesian
firms
To liberalize market smoothly
To protect consumers effectively
THANK YOU
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