Fair Trading Commission Overview of Competition Law The Experience of Barbados

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

2. Competition Law or Antitrust Law • 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

3. 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

4. History of Competition Law • 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)

5. 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

6. Fair Trading Commission Barbados • Requirement of Ch. 8 –Treaty of Chaguaramas • Public Consultation • Fair Trading Commission - Established 2001 • 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

7. Fair Competition act (Scope of Coverage) • 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

8. Initial Challenges Faced by Commission • Reaction of Business Community • 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

9. Initial Approach Adopted • 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

10. Subsequent Approach Adopted (to Develop Competition Culture) • 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

11. Industries Investigations

12. Performance To Date

13. Future Work Focus • 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

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