Challenges in Introducing Competition Law in Cambodia

1. Challenges in Introducing Competition Law in Cambodia By Om Dararith Director of Legel Affairs Deparment Ministry of Commerce, Cambodia

2. Content • Preparation of Competition Law in Cambodia • Content of Cambodian Draft Competition Law • Legislation process in Cambodia • Possible Challenges

3. Preparation of Competition Law in Cambodia 1. May 2005:Completion of 2 studies on state of competition in Cambodia, sponsored by UNCTAD and EU MULTRAP Project - Economic mapping of Cambodia: an overview of the Economy and the Nature of Economic distorsions by Goeffrey Sumner, EC Consultant. - Review of the Legal and Administrative Constraints on the Working of Markets in Cambodia by UNCTAD Consultant on Competition Law and Policy in Cambodia.

4. Preparation of Competition Law in Cambodia (cont’) 2. May 2005: Roundtable with government officials on the new policy framework for Cambodia’s competition law 3. May 2005:Roundtable with stakeholders on the formulation of a competition policy framework for Cambodia

5. Preparation of Competition Law in Cambodia (cont’) 4. June 2005: Establishment of Working Group on Competition Law and Policy by MOC, comprises of 7 members • 1 representative from Council of Minister • 2 representatives from Ministry of Commerce • 1 representative from Ministry of Justice • 1 representative from National Bank of Cambodia • 1 representative from Ministry of Economy and Finance

6. Preparation of Competition Law in Cambodia (cont’) 5. August 2005: Visit of 2 UNCTAD Experts on Competition law and policy • To explore the state of competition in Cambodia, the stakeholders point of views on the need and impact of competition law and policy in Cambodia and to prepare a working program and schedule for the competition law and policy in Cambodia • Meeting with different stakeholders: • Funding and development organisations: World Bank, ADB, EC, France Embassy • Government officials and the working Group on Competition • Professional associations: CAMFEBA, Phnom Penh Chamber of Commerce, French-Cambodian Chamber of Commerce, Phnom Penh Hotel Association…) and • Professionals: Banks, legal consultant…

7. Preparation of Competition Law in Cambodia (cont’) 6. January- March 2006: -Draft Law on Competition by 2 UNCTAD experts: Mr. Frédéric Jenny and Mr. Guy Charrier 7. March 2006: - Present and discuss the first Draft with the Working Group on Competition.

8. Review Draft Law on Competition by 2 UNCTAD experts • ADB expert, Mr.Kenneth Davidson • Law professor in US and Abroad, 10 years • Senior competition lawyer for the Federal Trade Commission (FTC), 25 years • Resident Advisor to the Indonesian Competition Commission 2002-2003 • Advisor to other Competition Agencies and NGOs, over a 20 year period • “Creating Effective Competition Institutions: Ideas for Transitional Economies” available on www.kennethdavidson.com

9. Guiding principles • Written in plain language to be understood by: • Government officials; • Member of Parliament; • Competition investigators and judges; • Producers and consumers. • “UNCTAD draft” requires prior knowledge of competition law and economics that does not exist in transitional economies.

10. I. Structure of the Draft Law

11. II. Main Functions

12. Legislation process

13. Possible Challenges • Adequate capacities building (Regulator, Policies maker and expert) • Consumer group and the media ( So as to generate awareness and support among the wider public for the adoption and implementation of Competition Law and Policies • The business to ensure their compliance with the Law and Policy

14. Challenges Con’t • Lack of resources and training institution • Lack of public and private participation • Lack of information accessible • Limited of small and medium enterprises and those are so small • Politic influence

15. Institutional Options Investigation Unit Prosecuting Unit Court-like Decisions Independent Agency Non Independent Agency New Court Existing Court

16. Thank you for your attention