Fair Trading Commission
The Experience of Barbados
Competition law and Policy Training Workshop
March 30-31, 2011
The Savannah Hotel

 Law that promotes and maintains market competition by regulating anti-competitive conduct.
 Adam Smith: Monopoly - "...great enemy to good
management Competition - medium for "...new divisions of labour, and new improvements of art”
• Competition is not an end in itself but a process that advances goals of economic well being, ultimately for consumers

Competition law or Antitrust law
(Three main elements)
 Prohibits agreements/practices that restrict competition between business - price fixing cartels
 Prohibits abusive behavior by a dominant firm, - predatory pricing, excessive pricing, refusal to supply
 Reviews mergers and acquisitions and joint ventures of large corporations:
• Prohibit potentially anti-competitive mergers
• Prescribe remedies to protect competition

 1890 — Sherman Antitrust Act (United States) Prohibits agreements in restraint of trade and monopolization
 1914 — Clayton Antitrust Act (United States) Prohibits specific types of conduct and mergers that may lessen competition
 1957 — (Article 81 and 82) Treaty of Rome established
(European Economic Community) Promoting economic integration to promote free trade
 1976 — Hart-Scott-Rodino Antitrust Improvement Act (United
States) investigate mergers
 1980 —Policies to tackle restrictive practices (UNCTAD)

Growth of Competition Law World wide
( 2010 - over 90 countries, 110 Authorities)
1900 Influence of monopolies United States
1960 Economic integration, free trade
1980 Economic efficiency, Privatization
2008 Transition from state control, Eastern
Europe, also Latin America/Barbados

 Requirement of Ch. 8 –Treaty of Chaguaramas
 Public Consultation
 Fair Trading Commission - Established 2001
1.
2.
3.
Utilities Regulation Act 2001 To Ensure Efficient
Utility Services
Fair Competition Act 2003 To Promote and
Maintain Competition
Consumer Protection Act 2003 To Protect
Consumer Rights

Similar to Treaty of Chaguaramas / EC Article 81 and 82
• EC Anti-Competitive Agreements
(Horizontal/Vertical)
• Abuse of Dominance
• Interlocking Directorates
• Includes Merger Control Provisions
• Provides for Authorisations
• Includes all domestic markets
• Includes Statutory Corporations


○
Over regulation,
○ Lacking the necessary expertise,
○ Restricted ability to expand/compete internationally
 Lack of Competition Culture and infrastructure
 Inexperienced Staff
 Inexperienced Judiciary/Legal/Technical
 Inadequacy of legislation/administrative procedures
 Limited financial resources

 Informal Grace Period
 Took on selected matters
 Sought technical Assistance
 Inform and educate public
 Special Stakeholder Seminars (business/Consumers etc.)
 Guidelines, Articles in press, Fliers
 Website
 Radio and TV

 Enforcement/Education
 Expanded Education Programme
 Internal Research studies
 Expand Range of Investigations
 Own Initiative Sector Investigations
 Specific Training Programmes
 Build Alliances - Business/Public Sector
 Develop International Linkages

Type of
Investigations
Industry
Abuse of Dominance • Telecommunications
• Construction
• Oil Industry
Anti Competitive
Agreements
• Professional Services
• Shipping
• Commercial Banking
Merger
• Telecommunications
• Distribution
No.

INVESTIGATIONS /Guidance
Abuse of Dominance Investigations
Agreements Investigations
Anti Competitive Conduct Guidance
Merger Investigations
Merger Guidance
Authorisation Investigations
Authorisation Guidance
Total
0
1
1
5

1.
2.
3.
4.
5.
6.
7.
Refine legislative framework
Inform and Educate businesses
Improve investigative procedures
Increase training of staff
Ensure Government Policy conforms with
Competition
Improve Knowledge of Judiciary
Provide Technical Assistance Regionally

Fair Trading Commission
The Experience of Barbados
Competition law and Policy Training Workshop
March 30-31, 2011
The Savannah Hotel