“As usual, in every scheme that worsens the position of the poor, it is the poor who are invoked as beneficiaries.” - Vandana Shiva Human Rights activist
This is not the case of competition Policy! Of course !
Competition Policy is to make sure that: ALL consumers have a vast choice BEST products BEST prices.
Low income consumers – Lower possibilities to choose. Free competition can help increase their options. Especially in vital products for everyday usage
“Anticompetitive practices …in the consumer goods sector clearly impose a large cost on consumers, and in particular the poorest consumers, by artificially increasing the price of basic necessities (such as chicken, bread, milk, beer, cement, bus transportation) and therefore reducing the real income of poorer consumers”. *Frederic Jenny, Cartels and Collusion in Developing Countries: Lessons from Empirical Evidence, World Competition 29(1): 109±137, 2006.
Poverty headcount ratio at national poverty line (% of population) 12.4 %2008 18.5%2005 25.4%2002 Albania is lower middle income level country
“An anticompetitive practice is not merely an administrative violation, but a denial of an opportunity for consumers of getting products at lower prices, better quality, more choice, and, thus, higher wellbeing”. Lindita Milo Chair of ACA
1. Vodafone / AMC – Unfair prices in Mobile Telephony Market (largest fine to date and recommendations that led to the opening of the market)
6. Bid Rigging saving public funds for purchasing more good and services.
Empirical studies (JENNY) have shown that international anti-competitive practices are often aimed at preventing the emergence of local industries in developing countries Hurt developing countries which are crucially dependent on imports Large sums of money generated from low income countries is passed at the undertakings taking part in international anti – competitive practices
Being successful in the national cases is not enough International cooperation is a must Especially cooperation between less developed countries/regional cooperation is needed. Cooperation should focus not only on joint seminars, trainings and events but also on concrete enforcement measures against international anticompetitive practices.
Competition policy is a “pro poor” policy ACA has prioritized investigations on “everyday”, consumer goods. Cooperation between state institutions is needed. Dialogue with judges, business community, legal community and ACADEMICS is a must. International cooperation should include concrete enforcement measures on cross- border/international anticompetitive practices.
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