R I J I T S E N G U P T A
I N T E R N A T I O N A L C O N F E R E N C E F O R O I C M E M B E R S O N
C O M P E T I T I O N I S S U E S
2 1 - 2 2 N O V E M B E R 2 0 1 1 , I S T A N B U L

• Background
• Countries
• Consumer Protection Regimes: Overview
• Competition Regime: Overview
• ACPs
• Key Emerging Issues for Future
• Way Forward
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Why this region?
- Dearth of background information
- Unfamiliar territory for CUTS (curiosity)
- Possibilities for comp reforms and consumer welfare
• Mission Objectives
Understand the prevailing state of the competition policy & Law (CPL) and consumer protection regimes in seven MENA countries & highlight key issues for action
Competition & Consumer Protection
Regimes in Select MENA Countries
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ALGERIA, EGYPT, JORDAN, LEBANON, MOROCCO, SYRIA & TUNISIA
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Historically, an important issues in the region
• Consumer issues dealt under the precincts of price control, consumer subsidies, quality, etc.
• Consumer protection received renewed interest under the Euro-Med agreements
• Explicit mention of consumer protection in some agreements (Algeria, Egypt, Lebanon & Tunisia)
• Syria adopted one with German TA
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Current State of Laws & Govt. Agencies
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Govt a major economic player in the market
• Consumer Protection Agencies face resource constraints, and lack adequate powers
• Consumer protection issues not well-integrated in the national development policy
• Consumer organisations need to be strengthened
(Consumer Movement)
• Cons Orgns gets most support from Govt. Deptt.
• Limited interest of media on consumer issues
• Donor interests and support necessary
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Introduction
- Important trading partner of Europe
- Trade liberalisation – role of external drivers
- Euro-Med Agreement (Comp in EMFTA)
- Competition provisions aligned with EC
- Advances in business environment reforms
• Policy environment for competition
- Govt still a major player in economic sphere
- Certain policies affect competition
- Political interference in enforcement
- In some countries, govt is supportive (funds++)
Competition & Consumer Protection
Regimes in Select MENA Countries
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Country Law (Y/N) Legislation
Algeria Yes
Year of
Enactment
2010
Competition Agency (CA) Since
Competition Council 2008
Egypt Yes
Competition (antitrust, unfair competition), Law No.10-05, as amended, 2010
(Replaced the Competition
Ordinance of 2003 and 2008)
Law No. 3 of 2005, Law on the
Protection of Competition and the
Prohibition of Monopolistic Practices
2005 Egyptian Competition
Authority
2005
Jordon Yes Competition Law No. 33 of 2004
(Provisional Law in 2002)
2004 Competition Directorate 2002
Lebanon No Draft Law of 2007, proposed by the
Ministry of Economy and Trade
Still pending
N.A.
N.A.
Morocco Yes Competition (Antitrust), Law No. 06-
99, 2000
2000
Syria
Tunisia
Yes
Yes
Competition and Anti-Trust Law (Law
No 7/2008)
Law No 91-64, of 29 1991, on
Competition And Prices
2008
1991
Directorate of Competition and Prices & Competition
Council
Competition Commission of Syria
Directorate General for
Competition and
Economic Surveys &
Competition Council
2001
2008
1991
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Stakeholders’ interest & Linkages
Stakeholder Level of Mode of Engagement
Engagement
Academia
Regulators
Moderate to High In some countries like Egypt, Jordan and Morocco the mode of engagement with academia was fairly systematic
High Well-designed process of engagement driven by: i) Legislative provisions and (ii) Operational arrangements
Business Low Not much engagement reported, except occasional seminars and exchanges (Egypt, Syria, Jordan)
Civil Society Low to Moderate Some countries have representatives from consumer organisations on the Board. Not much further to enable cooperation with CSO.
• Governance Issues in competition enforcement
- Decision-making
- Appointments
- Reporting Mechanisms
- Allocation of Funds
Competition & Consumer Protection
Regimes in Select MENA Countries
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A snapshot of some anti-competitive practices gathered during the mission
Country Case Description
Algeria

Abuse of dominance involving match manufacturer, SNTA

Abuse of dominance by the National Electronic Industry (ENIE)
Egypt

Film distribution case (report submitted)

Cement sector Cartel (price-fixing)
Jordan

Predatory pricing in Aluminium profiles

Allegation of abuse of dominant position in Cellphone (Zain)
Lebanon

Alleged cartel in imported food and vegetables
Morocco

A possible cement cartel (price-fixing)
Tunisia

Abuse of dominant position in poultry (Poulina)
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Need for greater importance to Consumer Rights
(Human Rights perspective)
• Strengthening Consumer Protection Agencies (CPA)
• Greater institutional autonomy & powers to agencies
• Tight penalties for violators of laws
• Capacity building programmes for CPAs & CAs
• A consumer movement/network in the region
• Greater stakeholder awareness & engagement
• Mobilising media interests on consumer issues
Competition & Consumer Protection
Regimes in Select MENA Countries
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• Political buy-in and public support for competition and consumer reforms
• Refinement of policies and legislations
• Institutional reforms in agencies
• Enhancing interest of young professionals (University courses, Research programmes)
• Strengthening CSOs engagement (network)
• Mobilise attention of development partners
• Integration into regional legislations/processes
Competition & Consumer Protection
Regimes in Select MENA Countries
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Rijit Sengupta rsg@cuts.org
Competition & Consumer Protection
Regimes in Select MENA Countries
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