Role of Stakeholders in the Implementation of Competition Law

SAWTEE and ActionAid Nepal (AAN) organised their 25th discussion forum on "Role of Stakeholders in the Implementation of Competition Law" on 8 October 2007 in Kathmandu, Nepal. The forum was held to provide a platform to the Nepalese stakeholders to discuss the implementation aspects of the recently enacted "Competition Promotion and Market Protection Act, 2063", the regulation of which is yet to be introduced by the government.

Presenting his paper "Implementation of Competition Law: An Indispensable Tool for Economic Justice", Mr Ratnakar Adhikari, Executive Chairperson, SAWTEE mentioned about the importance of competition law for a country like Nepal. He said that such law would not only enhance the competitiveness of domestic enterprises but would also help in preventing the anti-competitive practices of the foreign enterprises.    

Highlighting the anti-competitive practices such as collusive behaviour, price discrimination, exclusive dealing, misleading advertisement and tied selling, he said that the enactment of "Competition Promotion and Market Protection Act, 2063" is just a humble beginning to curb such practices and the government should not delay in introducing the regulation of the law for its implementation. 

He said that the system of compensation, system of reward, leniency and protection of "whistle blowers" and the firm placement of development dimension in the law are likely to contribute to promote fair competitive practices and consumer welfare. He, however, added that the law is flawed with an absence of independent competition authority, lack of clear advocacy role for competition authority, restrictive merger provisions lengthy and cumbersome process of initiating cases and these could affect the implementation process of the law. As a way forward, he stressed that the stakeholders have a major role to play to create a pressure for a meaningful implementation of the law and to support the government through research, analysis and information sharing.

The major highlights of the discussion held in the forum were:

- Stakeholders have yet to truly appreciate the significance of the competition law.
- Effective implementation of the competition law is a must for consumer welfare and enhancing the competitiveness of domestic enterprises.
- There should be a level playing field for the domestic enterprises.
- Stakeholders such as private sector, consumer groups and other civil society organisations, including media, should work collectively to generate awareness on competition and consumer rights issues as the government alone is not able to do it due to resource constraints.
- Independent competition authority is a must for the effective implementation of the competition law and not let it meet the same fate as Consumer Protection Act. 
- There should be a representation of private sector, civil society, academia/experts and consumer groups in the decision making bodies and processes.
 
Mr Prem Kumar Rai, Director General, Department of Commerce, Kathmandu; Mr. Kush Kumar Joshi, Second Vice President, Federation of Nepalese Chambers of Commerce and Industry(FNCCI), Kathmandu and Mr Rishi Niraula, Member, National Consumer Forum, Kathmandu were the discussants at the forum. The forum was chaired by Mr. Prachanda Man Shrestha, Joint Secretary, Ministry of Industry, Commerce and Supplies, Kathmandu.

The forum was attended by more than 35 persons representing government bodies, private sector, consumer group, research organisations and media.