BUSINESSES suspected of operating as cartels could face stronger action, with proposed changes to competition laws aimed at making it easier for the Fijian Competition and Consumer Commission (FCCC) to take alleged price-fixing and anti-competitive behaviour to court.
A cartel occurs when two or more businesses work together instead of competing, often through agreements such as fixing prices or limiting competition.
Under the current FCCC Act 2010, cartel-like behaviour can involve businesses secretly agreeing to fix prices or restrict competition, potentially resulting in consumers paying higher prices without knowing the market has been affected.
This is a challenge as FCCC needs to establish that a commitment was made or an agreement was acted upon.
FCCC chief executive Senikavika Jiuta said the proposed changes would remove the need to prove that businesses had taken a clear action or made a formal commitment after agreeing to limit competition.
“The element of commitment is now removed,” she told The Fiji Times.
“These proposed changes would allow discussions between businesses that demonstrate an intention to reduce competition to be considered in legal action.”
Ms Jiuta said the current law did not clearly define cartel-like behaviour, making it difficult for FCCC to build cases and resulting in limited court precedent.
“You’ll see there’s not much jurisprudence in court, or in high court or magistrates’ court, when we take these matters.”
She said the proposed changes would also provide FCCC with additional powers and tools to investigate alleged cartel activity and bring cases before the courts.
“So simply businessmen sitting at a restaurant and discussing this, we can take them to court.”
She added that FCCC currently had several cartels matters under review, including two investigations, but limitations under the existing legal framework affected how far the commission could proceed.
