CREATING AN EFFECTIVE COMPETITION AUTHORITY IN MYANMAR - By Pradeep S Mehta Mingalar par OUTLINE • Science for institutional building • Key institutional design questions • Criteria for evaluating competition law institutions • Sequencing of competition law enforcement • Challenges faced by young competition agencies • Way Forward: Need to create competition culture Science of Institution Building for Competition Regimes • Crafting a competition law appropriate to the country’s • • • • economic circumstances, regional commitments, legal environment and the socio-cultural situation Establishing the priorities of the competition authority Building the competition agency, including recruitment and training of staff, development of case-handling expertise, etc Developing a competition culture, including through relevant public education activities Developing support from the public and the highest authority in the country. Key Institutional Design: Questions Who would investigate and initiate proceedings Which branch of government would conduct investigation To what extent would competition decisions be reviewed What body would adjudicate contested competition proceedings Is there any role for political review by elected officials of competition authority decisions Criteria for evaluating competition law institutions (i) Independence-Accountability: Free from political interference; institutional independence for appointments, performance review etc (ii) Expertise-Detachment: High level expertise required for interpretation of empirical data, etc sector specific industries, (iii) Transparency-Confidentiality: High level of transparency in performing investigative enforcement and adjudicative function; sensitive issues to be kept confidential, etc Criteria for evaluating competition law institutions (iv) Administrative efficiency-due process: Many matters with which a competition law authority may be seized are time-sensitive (Eg. merger review) (v) Predictability-Flexibility: Significant value is placed on the predictability and consistency with which laws are applied. Sequencing of Competition Law Enforcement: Different Stages Start Enhancement Advancement Competition Advocacy and Education Merger Control Control of Horizontal Restraints Vertical Restraints International cooperation Checking Abuse of Dominance Development: effects doctrine Exceptions and Exemptions Technical Assistance Regional cooperation Regulation Maturity Second generation: international arrangements Pro-active competition advocacy Challenges faced by new competition agencies I. Borrow heavily from developed countries in designing their respective laws: does not effectively address the realities of the jurisdiction II. Young agencies commonly report a lack of cooperation and coordination of policy: particular government ministries and other regulatory bodies lack coordination III. Obstacles in dealing with cross-border anticompetitive conduct: lack formal and informal cooperative mechanisms with other countries’ authorities and immersion in a potential regional law Challenges faced by new competition agencies IV. Overlapping jurisdiction of the competition authority and the judiciary: lack of specialized competence 0f public prosecutors, attorneys and judiciary V. Extreme financial and human resource constraints: lack of specialized human capital within agencies and complementary educational and professional institutions VI. Lack of a competition culture: lack of awareness among business community, government/non-government agencies, judiciary, public, etc Way Forward: Need to Create Competition Culture • Building strategic alliances with other economic actors/stakeholders in the country and region: sector regulators, government agencies, media, legislature, academia, bar associations, trade unions, consumer organisations, chambers of commerce; • Doing or getting research done into possible areas of economic governance and activity which reduces competition and diminishes consumer welfare, and disseminating the results widely as both academic outputs and readerfriendly briefings; • Conducting public meetings and seminars for all stakeholders to demonstrate the benefits of enforcement actions, and build institutional credibility; • Undertake other measures that enhance transparency and public appreciation of competition policy and actions, including a media strategy which can reach out to a large audience. Chei-zu tin-bar-te Thank you psm@cuts.org