www.sec.ecowas.int/dept
ECOWAS COMPETITION POLICY
by:
Dr SACKO Seydou
Programme Officer
Trade and Competition
ECOWAS COMMISSION
V1.1
1
www.sec.ecowas.int/dept
ECOWAS Competition Policy
PRESENTATION

INTRODUCTION

BACKGROUND AND JUSTIFICATION

BASIC TEXTS



REGIONAL POLICY FRAMEWORK

SUPPLEMENTARY ACT ON COMMUNITY RULES

SUPPLEMENTARY ACT ON REGIONAL AUTHORITY
INSTITUTIONAL RELATIONS

COURT OF JUSTICE

UEMOA COMMISSION

UNCTAD
CONCLUSION
2
www.sec.ecowas.int/dept
ECOWAS Competition Policy

INTRODUCTION:

Vital instrument for promoting a market economy;

Occupies a key position among the vital instruments for promoting
modern economies

Essential for successful integration which can be achieved only by
creating a single liberalised and competitive market and a legal
rationalised and harmonised environment
3
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Legal basis and justification of a competition policy for
ECOWAS

ECOWAS Treaty –Art 50 P 7 & Art 60;

Recommendations by the EPA Ministerial Monitoring Committee;

Construction of
the common market-Customs Union-Large scale
production, provision of modern means of production-cost reduction for
the benefit of the sub-region’s populations.

Enterprises are most likely to adopt practices with a view to maintaining
their privileged position, practices which are prejudicial to the
competitiveness of our economies and to the welfare of consumers ;
hence, the need for competition to be organised on a sound basis.
4
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Legal basis and justification of a competition policy for
ECOWAS (cont.)

To ensure the proper functioning of the common market (even though it is
still in the process of being constructed) and enable economic operators
and final consumers to benefit from the effects of trade liberalisation
between Member States, ECOWAS deemed it necessary to endow itself
with an appropriate competition policy.

This policy is vital to the realisation of the domestic market- promotes
economic efficiency by creating an environment conducive to innovation
and technical progress to ensure maximum satisfaction of consumers’
needs and minimize costs of factors of production.
5
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Legal basis and justification of a competition policy for
ECOWAS (cont.)

Another function of the competition policy is that it is an effective tool for
achieving a level of competitiveness that is acceptable for economic
activities in the region for beneficial integration into the global economy,
which is also one of the objectives of integration.

An essential dimension that is expected to first prepare our enterprises for
international competition and, secondly, ensure the quality and security
of the legal business environment to attract investments.
6
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Regional Competition Policy Framework

Designed to provide a detailed clarification on the basic principles of the
competition policy and its outlines within the framework of a regional
integration process, this document comprises the following six segments:

Objective and basic principles of a competition policy;

Justification of a regional competition policy for ECOWAS;

Current status of competition laws within ECOWAS;

Main outlines of Community rules on competition within ECOWAS;

Implementation conditions: preconditions for effective application of regional
rules on competition;

Capacity building:
7
www.sec.ecowas.int/dept
ECOWAS Competition Policy
 Capacity

building
Regional
 Adoption of Regional Policy Framework,
 Adoption of Supplementary Acts,
 Establishment of Regional Authority,
 Formulation of necessary implementation rules,
 Scale of fines,
 Establishment of an Advisory Board,
 Etc.

National
 Harmonisation of national laws,
 Training, sensitisation,
 Etc.
8
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Supplementary Act on Community Rules and modalities for their
implementation

This act sets out the competition rules applicable in the region and the basic
principles in matters relating to prohibition of restrictive competition practices
and provides for acts complementary to the existing mechanism, particularly at
the procedural level. It comprises mainly:

general provisions (Articles 1, 2, 3, 4,) dealing with definitions, the objectives of
the rules and their scope;

provisions applicable to enterprises (Articles 5, 6,7) prohibiting in principle
concerted agreements and practices restricting competition, abuse of dominant
position and concentrations and providing for exemptions by category and on
individual basis;

provisions applicable to government assistance and specific sectors (public
entreprises) (Articles 8 and 9);

provisions relating to compensations and authorisations (exemptions) (Articles
10 and 11);

transitional provisions (Articles 12, 13 and 14);

final provisions (Articles 15, 16 and 17)
9
www.sec.ecowas.int/dept
ECOWAS Competition Policy

The structure of the Act on the Regional Competition
Authority is as follows:

Creation and composition of the Authority (Art. 1 and 2) ;

Duties and powers (Art. 3 and 4) ;

Procedures and sanctions (Art. 5 to 11)

Financing, accounting, auditing, rules of procedure (Art.12, 14);

Transitional provisions (Art. 15)

Final provisions (Art. 16, 17, and 18)
10
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Supplementary Act on the establishment, duties and
functions of the Regional Authority (cont.)

Reasons for the choice:

The UEMOA experience was considered. It was observed that some
factors (slow budgetary administrative procedures, time for conduct of
surveys, etc.) impede the effective implementation of a community
competition policy; hence, the need for such a regional authority to have
relative authority on the following grounds:

Activities financed with budgetary resources and any other resources that
may be determined by the Council of Ministers (Art.12)and the
Authority’s budget are controlled by the relevant organs of the
Commission.

The Executive Director and his deputies are directly under the President
of the Commission (Art.2),who has the right to inspect the activities of the
Authority, which submits to him an interim report and an annual report in
addition to specific notes.
11
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Regional Authority’s relations with UEMOA

Article 14 of the Supplementary Act on competition rules states in
principle that UEMOA’s experience should be taken into account.

Article 3 of the Act creating the Regional Authority reflects this
cooperation obligation. The Authority is expected to capitalise on
UEMOA’s experience in this area .

A subsequent act will determine the modalities for establishing this
cooperation.
12
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Authority’s relations with the Community Court of Justice

The different procedural acts ranging from preliminary investigation to
decision-making after examination of dispute cases should be consistent
with the legal provisions under the supervision of the Court.

In any event, an appeal against the different acts of the Authority may be
lodged at the Community Court of Justice, which shall sit as an appellate
court. Its decision is final.

The principle of dual jurisdiction is therefore retained.
13
www.sec.ecowas.int/dept
ECOWAS Competition Policy

Relations with UNCTAD

Cooperation process with UNCTAD

UNCTAD’s observations on project documents on competition

Prospects for technical meetings to monitor and put in place the
ECOWAS Competition Policy
14
www.sec.ecowas.int/dept
ECOWAS Competition Policy
REGIONAL POLICY FRAMEWORK
UEMOA
National Competition
Structure
COMMON RULES
Community
Court
of Justice
National Competition
Structure
National Competition
Structure
REGIONAL
COMPETITION
AUTHORITY
Advisory Bord
15
www.sec.ecowas.int/dept
ECOWAS Competition Policy

CONCLUSION:

As we analyse the ECOWAS competition policy, major issues arise,
namely:

What possible institutional arrangements could be put in place to ensure
the effective implementation of the ECOWAS Competition Policy?

The Issues of subsidiarities? (between regional and national level)

In what way UNCTAD, CUTS and others Regional Economic
organisations (COMESA, SADC, CEMAC etc.) can contribute or
cooperate to the capacity building of ECOWAS and of its Member States
in order to lay a solid foundation for this ECOWAS Competition Policy?
16
www.sec.ecowas.int/dept
ECOWAS Competition Policy
LINES OF THOUGHT

Support to ensure the effective implementation of the Regional Competition
Policy

Support to capacity building of national structures

Support to the establishment of the Regional Competitionn Authority

Specific or detailed joint studies

Support to the drafting of the Authority’s operational rules

Support to awareness and training campaigns organised for stakeholders

Etc.
17
www.sec.ecowas.int/dept
ECOWAS Competition Policy
Thank you for your attention
Merci de votre attention
Obrigado
WWW.ECOWAS.INT
18