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Fijian Competition and Consumer Protection Policy Statement

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Fijian Competition and Consumer Protection Policy Statement FIJIAN COMPETITION AND CONSUMER PROTECTION POLICY STATEMENT Ministry of Commerce, Trade, Tourism and Transport Levels 2 and 3 Civic Tower Victoria Parade, Suva Contents Contents ........................................................................................................................................................ 2 A. Introduction .......................................................................................................................................... 3 B. Objectives.............................................................................................................................................. 3 C. Policy framework for Competition and Consumer Protection ............................................................. 4 I. The Role of Government ................................................................................................................... 4 i. Ensuring Decision-Makers Consider Markets ............................................................................... 4 ii. Lowering Entry Barriers................................................................................................................. 4 iii. Making Government Business More Competitive ........................................................................ 5 iv. Public Procurement....................................................................................................................... 5 II. Rules for Businesses in Fiji ................................................................................................................ 5 i. Protecting the Competitive Process. ............................................................................................ 6 ii. Sector-Specific Regulation. ........................................................................................................... 7 iii. Access to Infrastructure and Services ........................................................................................... 7 iv. Empowerment of Micro and Small Enterprise ............................................................................. 8 III. Protecting Fijian Consumers ......................................................................................................... 8 i. Fair Consumer Transactions .......................................................................................................... 8 ii. Women, Rural, And Disadvantaged Consumers ........................................................................... 9 iii. Price and Rent Control .................................................................................................................. 9 IV. International Markets ................................................................................................................. 10 i. International Trade and Investment ........................................................................................... 10 ii. Cross-Border Enforcement ......................................................................................................... 10 D. Implementation and Oversight ........................................................................................................... 10 I. Strengthening Institutions .............................................................................................................. 10 II. Accountability, Monitoring and Evaluation .................................................................................... 11 2 A. Introduction 1. The Fijian Competition and Consumer Protection Policy Statement (‘Statement’) sets out Government's commitments in relation to competition and consumer protection in the Fijian markets for goods and services. 2. The Fijian Government recognises that in order to achieve a ‘Better Fiji for All’, markets need to be competitive, efficient, fair, and informed. These are key features of a well-functioning competitive market economy and are the drivers for transformative socio-economic development. 3. An effective legal framework for Competition and Consumer Protection can bring immense benefits to both the market players and the national economy as a whole. These are reflected as social benefits as they impact large numbers of consumers spread across Fiji. The benefits include: a. increased efficiency in the production, distribution and supply of goods and services; b. increased dynamic efficiency in the continued innovation of goods and services; c. efficient allocation of resources; and d. Lower prices, higher product and service quality and a wider choice for consumers. B. Objectives 4. The principal objective of the Statement is to support economic growth that is sustainable and inclusive, by promoting competition and consumer protection in the Fijian markets. This can help achieve a positive socio-economic transformation for all Fijians in the following ways: a. Economic growth is achieved when the inflation-adjusted market value of the goods and services produced in the economy increases over time. b. Economic growth is sustainable when it can be maintained without creating significant environmental, economic or other problems, especially for future generations. c. Economic growth is inclusive when it reduces poverty and increases employment opportunities for all groups in Fiji. 3 5. The Statement aims to ‘promote greater self-regulation and compliance and reduce restrictive trade practices’1. It addresses problems related to anti-competitive conduct and agreements, the control of mergers and acquisitions, misuse of market power, particularly in markets opened up as a result of major reforms, globalization, the increased integration of global value chains and the increase in cross-border trade. The Statement also addresses the need for effective consumer protection. 6. Together, these objectives will improve consumer welfare by making markets work well. C. Policy framework for Competition and Consumer Protection I. The Role of Government i. Ensuring Decision-Makers Consider Markets 7. Government, acting through the Ministry of Commerce, Trade, Tourism and Transport (‘Government’), will work to promote competition. This recognises that policies should be consistent with the principles of promoting competition, including enforcement and advocacy. Compelling public policy justifications will be required for legislation, policies and regulations that restrict competition. 8. When competition is in tension with other public interests, a restriction on competition might be acceptable where: a. the proposed restriction on competition is the least anti-competitive way to achieve the policy objective; and b. there is a clear and compelling case that the restriction is in the interest of the wider community. ii. Lowering Entry Barriers 9. Where existing laws, practices and procedures of Government might inhibit the development of competition in the Fijian markets, Government will progressively review legislation, regulation and 1 Ministry of Economy, 5-Year and 20-Year National Development Plan: Transforming Fiji (2017), p. 87. 4 administrative procedures to ascertain whether those create barriers to entry into, or expansion within, markets in Fiji. iii. Making Government Business More Competitive 10. Government will seek to ensure that entities undergoing State Owned Enterprise (SOE) reform do not take advantage of any change in their status or supervision to engage in conduct that is anti-competitive. 11. Where services are provided by operators of natural monopoly infrastructure, their prices may be set, administered or overseen by authorities independent from those operators, on the basis of transparent criteria. 12. Unless there are compelling reasons to the contrary, enterprises that are connected with the public sector may not enjoy special advantages relative to private sector enterprises. 13. A ‘level playing field’ should exist between Government business activities and private sector enterprises. Government business activities that compete with private provision should comply with competitive neutrality principles. This means that Government business activities should not enjoy a net competitive advantage in a market simply as a result of government ownership. 14. This Statement notes that competitive neutrality is not appropriate in all cases, such as those where it hampers the achievement of important societal goals but, where exceptions are justified, they should be subject to objective determination. iv. Public Procurement 15. Government re-affirms the principles of the Procurement Regulations 2010 pursuant to the Financial Management Act 2004, which is aligned to this Statement. Government will continue to promote a sound, fair and competitive public procurement system that ensures efficiency, integrity in public service delivery and confidence in the private sector. II. Rules for Businesses in Fiji 5 i. Protecting the Competitive Process. 16. Government will modernise and improve the FCCC Act to provide better protection of the competitive process against conduct and transactions that have anti-competitive effects. 17. Misuse of market power is contrary to the public interest. The FCCC Act will be amended so that misuse of market power is assessed and determined by applying a substantial lessening of competition test and a ‘rule of reason’ standard when assessing potential anti-competitive conduct. a. A ‘rule of reason’ standard requires reasonable proof that conduct’s anti-competitive effects outweigh any pro-competitive gains. 18.
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