1. RIJIT SENGUPTA INTERNATIONAL CONFERENCE FOR OIC MEMBERS ON COMPETITION ISSUES 21-22 NOVEMBER 2011, ISTANBUL COMPETITION & CONSUMER PROTECTION REGIMES IN SELECT MENA COUNTRIES

2. OUTLINE OF PRESENTATION Background Countries Consumer Protection Regimes: Overview Competition Regime: Overview ACPs Key Emerging Issues for Future Way Forward Competition & Consumer Protection Regimes in Select MENA Countries 2

3. BACKGROUND Why this region? - Dearth of background information - Unfamiliar territory for CUTS (curiosity) - Possibilities for comp reforms and consumer welfare Mission Objectives Understand the prevailing state of the competition policy & Law (CPL) and consumer protection regimes in seven MENA countries & highlight key issues for action Competition & Consumer Protection Regimes in Select MENA Countries 3

4. COUNTRIES ALGERIA, EGYPT, JORDAN, LEBANON, MOROCCO, SYRIA & TUNISIA Competition & Consumer Protection Regimes in Select MENA Countries 4

5. CONSUMER PROTECTION REGIME: INTRODUCTION Historically, an important issues in the region Consumer issues dealt under the precincts of price control, consumer subsidies, quality, etc. Consumer protection received renewed interest under the Euro-Med agreements Explicit mention of consumer protection in some agreements (Algeria, Egypt, Lebanon & Tunisia) Syria adopted one with German TA Competition & Consumer Protection Regimes in Select MENA Countries 5

6. CONSUMER PROTECTION REGIME: LAWS & AGENCIES Current State of Laws & Govt. Agencies Competition & Consumer Protection Regimes in Select MENA Countries 6

7. CONSUMER PROTECTION REGIME: INTERESTING FEATURES Govt a major economic player in the market Consumer Protection Agencies face resource constraints, and lack adequate powers Consumer protection issues not well-integrated in the national development policy Consumer organisations need to be strengthened (Consumer Movement) Cons Orgns gets most support from Govt. Deptt. Limited interest of media on consumer issues Donor interests and support necessary Competition & Consumer Protection Regimes in Select MENA Countries 7

8. COMPETITION REGIME: INTRODUCTION Introduction - Important trading partner of Europe - Trade liberalisation – role of external drivers - Euro-Med Agreement (Comp in EMFTA) - Competition provisions aligned with EC - Advances in business environment reforms Policy environment for competition - Govt still a major player in economic sphere - Certain policies affect competition - Political interference in enforcement - In some countries, govt is supportive (funds++) Competition & Consumer Protection Regimes in Select MENA Countries 8

9. COMPETITION REGIME: LAWS & AGENCIES Competition & Consumer Protection Regimes in Select MENA Countries 9 CountryLaw (Y/N)LegislationYear of Enactment Competition Agency (CA)Since Algeria YesCompetition (antitrust, unfair competition), Law No.10-05, as amended, 2010 (Replaced the Competition Ordinance of 2003 and 2008) 2010Competition Council2008 Egypt YesLaw No. 3 of 2005, Law on the Protection of Competition and the Prohibition of Monopolistic Practices 2005Egyptian Competition Authority 2005 Jordon YesCompetition Law No. 33 of 2004 (Provisional Law in 2002) 2004Competition Directorate2002 LebanonNo Draft Law of 2007, proposed by the Ministry of Economy and Trade Still pending N.A. Morocco YesCompetition (Antitrust), Law No. 06- 99, 2000 2000Directorate of Competition and Prices & Competition Council 2001 Syria YesCompetition and Anti-Trust Law (Law No 7/2008) 2008Competition Commission of Syria 2008 Tunisia YesLaw No 91-64, of 29 1991, on Competition And Prices 1991Directorate General for Competition and Economic Surveys & Competition Council 1991

10. COMPETITION REGIME: INTERESTRING FEATURES Stakeholders’ interest & Linkages Governance Issues in competition enforcement - Decision-making - Appointments - Reporting Mechanisms - Allocation of Funds Competition & Consumer Protection Regimes in Select MENA Countries 10 Stakeholder Level of Engagement Mode of Engagement AcademiaModerate to High In some countries like Egypt, Jordan and Morocco the mode of engagement with academia was fairly systematic RegulatorsHigh Well-designed process of engagement driven by: i) Legislative provisions and (ii) Operational arrangements BusinessLow Not much engagement reported, except occasional seminars and exchanges (Egypt, Syria, Jordan) Civil SocietyLow to ModerateSome countries have representatives from consumer organisations on the Board. Not much further to enable cooperation with CSO.

11. ANTI-COMPETITIVE PRACTICES (ALLEGED & RECORDED) CountryCase Description Algeria  Abuse of dominance involving match manufacturer, SNTA  Abuse of dominance by the National Electronic Industry (ENIE) Egypt  Film distribution case (report submitted)  Cement sector Cartel (price-fixing) Jordan  Predatory pricing in Aluminium profiles  Allegation of abuse of dominant position in Cellphone (Zain) Lebanon  Alleged cartel in imported food and vegetables Morocco  A possible cement cartel (price-fixing) Tunisia  Abuse of dominant position in poultry (Poulina) Competition & Consumer Protection Regimes in Select MENA Countries 11 A snapshot of some anti-competitive practices gathered during the mission

12. SUMMARISING THE KEY ISSUES Need for greater importance to Consumer Rights (Human Rights perspective) Strengthening Consumer Protection Agencies (CPA) Greater institutional autonomy & powers to agencies Tight penalties for violators of laws Capacity building programmes for CPAs & CAs A consumer movement/network in the region Greater stakeholder awareness & engagement Mobilising media interests on consumer issues Competition & Consumer Protection Regimes in Select MENA Countries 12

13. WAY FORWARD Political buy-in and public support for competition and consumer reforms Refinement of policies and legislations Institutional reforms in agencies Enhancing interest of young professionals (University courses, Research programmes) Strengthening CSOs engagement (network) Mobilise attention of development partners Integration into regional legislations/processes Competition & Consumer Protection Regimes in Select MENA Countries 13

14. Shukran, Merci, Teşekkür Ederim Rijit Sengupta rsg@cuts.org Competition & Consumer Protection Regimes in Select MENA Countries 14