Launching the ASEAN Regional Guidelines on Competition Policy in 2010, Dr. SurinPitsuvan, Secretary General of ASEAN, said ‘it is a pioneering attempt to achieve the stated goal of ensuring ASEAN as a highly competitive region envisaged in the ASEAN Economic Community (AEC) Blueprint, in particular the introduction of nation-wide Competition Policy and Law by 2015’.
The Guidelines are based on country experiences and international best practices with the view to creating a fair competition environment in ASEAN. It seeks to enhance and expedite the development of national competition policy within each ASEAN Member State.
Objectives of Regional Guidelines
* The AEC Blueprint which each ASEAN Member Country shall abide by and implement by 2015. The AEC Blueprint will transform ASEAN into a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy;
* To fulfill the goal of a highly competitive economic region, one of the action tasks identified under the AEC Blueprint is to develop regional guidelines on competition policy;
*To create an official body comprising representatives from the competition authorities and agencies responsible for competition policy in the ASEAN member states. The AEGC coordinates the implementation of competition policies in ASEAN.
Purpose and Benefits of Regional Guidelines
The Regional Guidelines serve as a general framework guide for the ASEAN member states as they endeavor to introduce, implement and develop competition policy in accordance with the specific legal and economic context in each country.
The Guidelines endeavor to help in the process of building stronger economic integration in the region, by acting as a common reference guide for future cooperation to enhance the competitive process in the ASEAN member states. It is important to note that the Guidelines serve only as a reference and are not binding on the member states.
The Guidelines take into account the varying development stages of the competition policy in the member states.
Definition of Competition Policy
Competition policy can be broadly defined as a governmental policy that promotes or maintains the level of competition in markets, and includes government measures that directly affect the behavior of enterprises and the structure of industry and markets.
Main objectives and Benefits of Competition Policy
The most commonly stated objective is the promotion and the protection of the competitive process. Competition policy introduces a ‘level-playing field’ for all market players that will help markets to be competitive. It will set ‘rules of the game’ that – in the end – protects the consumer of products and services.
The scope of the policy includes:
• Prohibition of Anti-competitive Agreements
• Prohibition of Abuse of a Dominant Position
• Prohibition of Anti-competitive Mergers.
The Regional Guidelines can be downloaded from www.asean.org
As mentioned above, the AEC) Blueprint envisaged in particular the introduction of nation-wide Competition Policy and Law by 2015’.
The Philippines just made it: President Aquino the other day signed into law the Philippine Competition Act which will create a Philippine Competition Commission that will implement law. There will be a two-year transitory period during which companies operating in the Philippines are expected to adjust to the provisions of the law. It is trusted that the competition environment in the Philippines will change in the years to come to achieve the level playing field for companies operating in a sector and increase fair competition to the benefit of the Filipino consumer. schumacher@eccp.com