Competition Act at final stage
Shakhawat Hossain | Sunday, 27 July 2008
The government has drafted an act, which would prevent practices from having adverse effects on fair competition and at the same time eliminate restrictive agreements among business enterprises, commerce ministry officials said Saturday.
Titled as the Competition Act, 2008, it suggested the formation of a Commission, which will act as a watchdog to prevent malpractices among enterprises to keep the market stable in line with the country's economic development.
The commission will be called the 'Bangladesh Competition Commission' whose main responsibility will be to promote fair competition and protect the interests of consumers.
It may penalise a perpetrator with a maximum one-year imprisonment or Tk 1.0 million in fines.
"If any person fails to comply with any direction given by the Commission under sub-section (5) of section 21; the Commission shall impose on such person a penalty of taka one lakh for each day during which such failure continues," said the draft.
A senior official said the commerce ministry has already received opinions from businessmen, academicians and experts about the act.
Opinions given by them are positive as the ministry is working to finalise the act for getting final approval of the advisory council.
Another commerce ministry official, however, expressed doubt about the approval process of the act that is pro-consumer in nature.
Referring to the delay in approval process of the proposed consumer protection act, the official said a section of the society is opposed to such acts.
The ministry has been working on a consumer protection act for more than half a decade including one and half years under the caretaker government. But the act is yet to materialise.
However, the proposed competitive commission will mainly look after the following areas which might be affected by the prohibited anti-competition activities.
The areas are (a) directly or indirectly determines purchase or sale prices, (b) limits or controls production, supply, markets, technical development, investment or provision of services, (c) shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way and (d) directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition.
The proposed commission will consist of maximum five members appointed by Government, one of whom will be appointed as the chairperson.
The chairperson and other members will be judges of the High Court, or has experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs and administration.
The head office of the commission will be in Dhaka and it may establish branch offices at other places in the country.
Titled as the Competition Act, 2008, it suggested the formation of a Commission, which will act as a watchdog to prevent malpractices among enterprises to keep the market stable in line with the country's economic development.
The commission will be called the 'Bangladesh Competition Commission' whose main responsibility will be to promote fair competition and protect the interests of consumers.
It may penalise a perpetrator with a maximum one-year imprisonment or Tk 1.0 million in fines.
"If any person fails to comply with any direction given by the Commission under sub-section (5) of section 21; the Commission shall impose on such person a penalty of taka one lakh for each day during which such failure continues," said the draft.
A senior official said the commerce ministry has already received opinions from businessmen, academicians and experts about the act.
Opinions given by them are positive as the ministry is working to finalise the act for getting final approval of the advisory council.
Another commerce ministry official, however, expressed doubt about the approval process of the act that is pro-consumer in nature.
Referring to the delay in approval process of the proposed consumer protection act, the official said a section of the society is opposed to such acts.
The ministry has been working on a consumer protection act for more than half a decade including one and half years under the caretaker government. But the act is yet to materialise.
However, the proposed competitive commission will mainly look after the following areas which might be affected by the prohibited anti-competition activities.
The areas are (a) directly or indirectly determines purchase or sale prices, (b) limits or controls production, supply, markets, technical development, investment or provision of services, (c) shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way and (d) directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition.
The proposed commission will consist of maximum five members appointed by Government, one of whom will be appointed as the chairperson.
The chairperson and other members will be judges of the High Court, or has experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs and administration.
The head office of the commission will be in Dhaka and it may establish branch offices at other places in the country.