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

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Presentation on theme: "Challenges in Introducing Competition Law in Cambodia By Om Dararith Director of Legel Affairs Deparment Ministry of Commerce, Cambodia."— Presentation transcript:

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  Advisor to other Competition Agencies and NGOs, over a 20 year period  “Creating Effective Competition Institutions: Ideas for Transitional Economies” available on

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 ChapterContentArticle IObjectives1 to 3 IILawful and Unlawful practices4 to 15 IIIOffice of Investigation and Prosecution16 to 19 IVCompetition Court20 to 22 VConduct of Competition Court23 to 24 VIOrders of Competition Court25 to 27 VIIAppeals to the Supreme Court28 to 29 VIIIObligations of Government Agencies30 to 34 IXPenalties35 X & XITransitional and Final Provisions36 to 37

11 II. Main Functions FunctionChapterContent Legal Framework IObjectives IILawful and Unlawful practices Institutional Aspects IIIOffice of Investigation and Prosecution 1 - InvestigationIVCompetition Court 2 - ProsecutionVConduct of Competition Court 3 - Court-like DecisionsVIOrders of Competition Court VIIAppeals to the Supreme Court IXPenalties Competitive Assessment VIII Obligations of Government Agencies Other X & XITransitional and Final Provisions

12 Step 1 at Ministry of commerce: Preparation of a draft, which is then submitted to the Council of Ministers (CoM) S tep 2 at CoM: Secretary General of Government forwards the proposed draft to CoJ & OBSES to review and comment Step 3 at CoM: Discussion of the draft in an inter-ministerial meeting Step 4 at CoM : Final approval by CoM, which is then submitted to National Assembly Step 5 at NA : Review and discus on the proposed law with the commission Step 6 at NA : Adoption of the Law by NA Step 7 at SN : Review and discus on the proposed law with the commission Step 8 at SN: Adoption of the Law by SN Legislation process

13 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 Possible Challenges

14 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 Challenges Con’t

15 Institutional Options Investigation Unit Prosecuti ng Unit Court-like Decisions Independe nt Agency Non Independe nt Agency New Court Existin g Court A Independent Agency Director of Investigation New Court / Chamber B Independent Agency Director of Investigation First Instance Court C MOC or other Department First instance Prosecutor First Instance Court D MOC or other Department New Prosecutor Unit New Court / Chamber

16 Thank you for your attention


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