Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Finally, there is something on the proposed Competition Commission. News reports say that the Bangladesh Competition Commission (BCC), the newly designated entity to look after various kinds of market scheming affecting consumers is expected to start functioning from next month with the appointment of its chairperson and members. Finding the right persons to run an organisation such as the Competition Commission is no doubt very important, but this must not be seen as the final, not even a good starting step, in having the commission operational. For, all it takes for the commission to run effectively is befitting organisational set-up equipped with a core group of competent manpower capable of analysing market reactions and responses on a regular basis and take measures in accordance with the law.
The very idea prompting enactment of competition laws and commissions is one and the same across the globe in that the purpose is to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets. While curbing syndicated monopoly in times of sudden fluctuation in prices of commodities is a prime mandated activity of the competition commissions all over the world, the main tools required are human and related resources to effectively prevail upon the situation. It is here that the commission will have to assume the role of a watchdog.
The commission is also required to give opinion on competition issues on reference received from other agencies established under law and to undertake competition advocacy, create public awareness and impart training on competition issues. The Indian Supreme Court in response to a civil appeal in 2010 clearly spelt out the role and functions of the Competition Commission in India, which may be applicable in most countries, including ours. According to the judgment, the main objective is "to promote economic efficiency using competition as one of the means of assisting the creation of market responsive to consumer needs and preferences. The advantages of perfect competition are three-fold: allocative efficiency which ensures the effective allocation of resources, productive efficiency which ensures that costs of production are kept at a minimum, and dynamic efficiency which promotes innovative practices."
Bangladesh government enacted the 'Competition Act 2012' in June 2012 providing for the establishment of the commission as a statutory body with powers similar to those of the civil courts in the country. It did take a long time to finally get the draft bill made into a law. The need for the Law was more than ordinary. In the present day globalised market economy, given the limitations of governments to prevail upon market practices with regulatory instruments, competition law is one of the most preferred measures to restrict unfair business practices while at the same time improve production and pricing efficiency. In Bangladesh, during the past two decades or so, flagrant violation of basic business ethics through cartels, notorious syndicates, hoarding, black marketing and so on have plagued the marketplace with serious distortions that more than necessitated a legally recognised system to tackle the situation. It is sad that after the passage of the law around three years ago, the government is yet to make the all important commission visible. Needless to say, an act or a policy is no more than an expression of intent, and to make it functional, it has to be worked out through appropriate execution mechanism. Now that, as reports say, all but the appointments of the key personnel are complete, one hopes the new organisation will be led by capable people, including legal experts.
For its functional purposes, the commission will be required to frame rules, policies, administrative decisions, and set up mechanisms for conducting enquiries on receipt of complaints, devising procedures for preliminary determination of anti-competitive behaviour and take penal action upon final and conclusive determination through public hearing or whatever is deemed appropriate. The job is challenging in as much as it entails understanding and pre-empting market conditions under different circumstances - domestic as well as global - and the way they tell upon consumers on the one hand and upon the market players, on the other.
This calls for, besides effective market monitoring, developing and nurturing relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in strict conformity with the competition law. In pursuing the path, a commission can be expected to perform competition advocacy and spread information on benefits of competition among all stakeholders to establish and nurture healthy competition culture in the economy.