Levelling the Field for Development: Gambia Competition Commission

1. SIXTH ANNUAL AFRICAN CONSUMER PROTECTION DIALOQUE CONFERENCEMALAWI SEPTEMBER 8-10 2014By Amadou CeesayExecutive Secretary GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

2. OUTLINE: • Mandate of Competition Authorities • Objectives of The Gambia Competition ACT 2007. • Functions of the GCC/ Prohibited practices • The journey thus far • Strategic Direction • Challenges GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

3. MANDATE OF COMPETITION AUTHORITIES: • To promote, maintain and enforce competition, in order to: • Promote economic efficiency and development • Increase consumer choice and competitive prices • Promote employment and advance social and economic welfare. • Participation in world markets • Equitable participation by SMEs in the economy GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

4. OBJECTIVES OF THE GCC ACT 2007 The objectives of the Competition Act are: • • ‘To foster competitive markets and competitive business conduct in The Gambia by establishing a Competition Commission and a competition regime that will control anticompetitive arrangements, monopoly situations and mergers with the aim of improving the well-being of consumers and the efficiency of businesses in The Gambia’. • To give confidence to those wishing to invest in the Gambia • To demonstrates the government’s commitment to a free-market economy GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

5. FUNCTIONS OF THE GCC • Curb practices that have an appreciably adverse effect on competition by creating a level playing field, within which businesses can thrive in a liberal and competitive market. • Maintain and enhance efficient market conduct and promote overall productivity, innovation and competitiveness of markets. • Protect the interests of the consumers in terms of competitive prices and product choices. GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

6. FUNCTIONS OF THE GCC • Promote and sustain competition in the market to advance the social and economic welfare of the population. • Create and expand opportunities for small and medium-sized enterprises to participate in the economy. • Offer advice to the Government or other public authorities on national needs and policies in respect of competition matters. GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

7. PROHIBITED PRACTICES. • Anticompetitive agreements (horizontal and vertical agreements) • Both restrictive vertical and horizontal agreements are prohibited. Collusive horizontal agreements are subject to outright prohibition courting a monetary fine; and nullification of the agreement in total where the anticompetitive portions of the agreement cannot be severed from the whole. Vertical agreements, on the other hand, entered into by parties that occupy a “monopoly situation” and horizontal non-collusive agreements are subject to investigation. • Exploitation of Monopoly Situation • The Act prohibits the restriction or distortion of competition by companies that occupy a monopoly situation • Mergers that Substantially Lessen Competition GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

8. THE JOURNEY THUS FAR: • WHAT HAS BEEN DONE: Capacity Building. Training of GCC staff in substantive areas of competition law enforcement • Investigative skills • Litigation skills • Research skills • Economic analysis skills • Managerial skills • Training of staff (Records management, public procurement) GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

9. THE JOURNEY THUS FAR: • WHAT HAS BEEN DONE: Advocacy: • Workshops: • Sector regulators • Public procurement • Legal profession • Radio/TV sensitization: • Development of a website and strategic documents GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

10. THE JOURNEY THUS FAR: What has been done: Enforcement of the Act. • Money Transfer Agreement (decision) • Commodities market study (Rice and Sugar) • Medical Insurance investigation GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

11. THE JOURNEY THUS FAR: • What has been done : In Support of the Act. • Consumer protection. GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

12. COMPETITION AND CONSUMER PROTECTION • One of the goals of a viable competition regime is consumer welfare! • Crucially, competition law is to ensure that competition exists in the market and is protected. • Competition law aims to protect the process of competition and not competitors • Competition Law provides a protection to domestic firms from foreign firms that use anti-competitive business practices to capture national markets • Competition enforcement therefore leads to consumer welfare GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

13. THE PREMISE: • Fair competition benefits consumers and the economy; a good effective competition policy and law promotes the interest of the consumers, the producers and the whole nation. • Indicators of consumer welfare: lower prices, better quality, more choice, easy access • The effective implementation of a competition law leads to the attainment of these four attributes GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

14. COMPETITION ENFORCEMENT: • We know that a robust competition law will prevent practices that distort competition, either directly or indirectly and will ensure that businesses enjoy the maximum benefits. • And it is not the existence of the law and the agency that matters but the effective enforcement of the law by the agency • Competition laws can be used to attain consumer welfare and some basic consumer rights GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

15. THE IDEAL FRAMEWORK: • We could ask what framework would be ideal: hybrid laws and a hybrid agency or two different laws implemented by two different agencies. • The Gambia OPTED TO HAVE BOTH ACTS IMPLEMENTED BY ONE AGENCY HENCE THE NAME CHANGE TO GCCPC GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

16. Strategic Direction: • STRATEGIC PLAN: The overall objectives of the plan are to: • Make the public more aware of GCCPC and its functions. • Build the capacity of staff for increased efficiency. • Engage more donors to increase the institution’s financial resource base. GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

17. Going forward: CHALLENGES: • CAPACITY /RESOURCE CONSTRAINTS. • RELATIONSHIPS WITH SECTOR REGULATORS • MANAGING EXPECTATIONS. GAMBIA COMPETITION COMMISSIONLevelling the Field for Development

18. Thankyou • Any Questions • See our website at www.gcc.gm for further information GAMBIA COMPETITION COMMISSIONLevelling the Field for Development