FIJI Commerce Commission (“Commission”) is the competition regulator for Fiji.
The commission is an independent statutory body established under Section 7 of the Commerce Commission Act 2010 (CCA 2010) to ensure the integrated framework for the regulation of monopoly market structures; encourage competition, prohibit anti-competitive conducts such as exclusive dealing, resale maintenance, collective tendering and even monitor mergers and acquisitions that poses the risk of minimise competition.
With the mission of enhancing the welfare of the Fijian people, the commission strives to ensure that our market is made competitive and informed to create a level playing field among businesses and consumers.
What is competition
regulation?
Competition regulation is a set of laws promulgated to promote competition in the Fijian markets and guard against anti-competitive conduct that can lead to distortion.
The aim of competition law is to remove obstacles to competition in markets to ensure that entry and exit from any market is not unnecessary restricted through the creation of real or artificial barriers by businesses, contracts and even state enterprises. The competition law is implemented through public and private enforcement.
History of Competition Law in Fiji.
Competition regulation gained recognition in Fiji with the enactment and implementation of the Fair Trading Decree 1992 administered by the Department of National Trade Standard and Measurement.
Slight amendments were made in 1998, through the introduction of the Commerce Commission Act that was put in place to regulate access to state owned services and infrstructures.
The Commerce Commission Act 1998, emerged as a result of economic policy changes in Fiji in the late 1980s to early 1990s focused on promoting effective competition and informed markets, encourage fair trading with the addition to protect consumers and businesses from unfair trade practices and imposing price on certain goods and services.
In 2010, a Cabinet decision resulted in the merger, and repeal, of three pieces of legislations, Fair Trading Decree 1992, Counter Inflation Act 1973 and Commerce Act 1998 into a single law, Commerce Commission Decree 2010.
Objectives of Fiji’s
Competition Law
* Promotion of the effective and efficient development of industry trade or commerce;
* Secure effective competition in industry, trade or commerce;
* Ensure equitable returns for businesses with fair and reasonable prices charged to consumers;
* Promote effective competition in the interests of consumers;
* Facilitate an approximate balance between efficiency and environmental and social considerations; and
* Ensure non-discriminatory access to monopoly and near monopoly infrastructure or services.
Benefits of Competition Law
Competition is a basic mechanism of the market economy and encourages companies to provide consumers products that consumers want at competitive prices.
In order to be effective, competition needs suppliers who are independent of each other, each subject to the competitive pressure exerted by the others.
There is already substantial evidence of the benefits of competition regime in Fiji through economic development, greater efficiency in international trade and consumer welfare. The common benefits resulting from the enforcement of Competition Law are:
* greater production, allocative and dynamic efficiency, welfare and growth;
* rewards good performance;
* encourages entrepreneurial activity;
* catalyses entry of new firms;
* promotes greater efficiency on the part of enterprises;
* reduces cost of production;
* improves competitiveness of enterprises;
* sanctions poor performance by producers;
* enhances competitiveness in international trade; and
* ensures product quality, cheaper prices and passing on of cost savings to consumers.
What are anti-competitive agreements?
These are agreements, understanding or an action plan between two or more parties/ or traders that has the effect of lessening competition in a market place.
Such agreements by traders can distort competition by cooperating with competitors, fixing prices or dividing the market up so that each one has a monopoly in part of the market.
Anti-competitive agreements can be open or secret (e.g. cartels).
What is abuse of dominant position?
A dominant position is a situation in which one or more enterprises possess such significant market power/share to adjust prices, outputs or trading terms without effective constraint from competitors. A dominant position is not in itself anti-competitive, but if the company exploits this position to eliminate competition, it is considered to have abused it. If such is the case, then it is deemed to be anti-competitive and becomes a restricted conduct under Commerce Commission Decree 2010.
Examples include:
* Charging unreasonably high prices
* Depriving smaller competitors of customers by selling at artificially low prices they can’t compete with.
* Obstructing competitors in the market (or in another related market) by forcing consumers to buy a product which is artificially related to a more popular, in-demand product
* Refusing to deal with certain customers or offering special discounts to customers who buy all or most of their supplies from the dominant company
* Making the sale of one product conditional on the sale of another product.
* Next Week: Price Regulation
For more information/details on price regulation in Fiji, visit our website on www.commcomm.gov.fj or join us on Facebook as Fiji Commerce Commission or call 3372178/ 8921991.
