International Dimensions of Competition Law

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International

Dimensions of
Competition Law

D R . V . S H Y A M K I S H O R E ,
P R O F E S S O R O F L A W ,
A L L I A N C E S C H O O L O F L A W ,
A L L I A N C E U N I V E R S I T Y
Globalization and Competition Law
• International economic integration on the rise.

• Globalization has increased the number of participants and the potential size of
many markets, while enhancing the potential for economies of scale.

• Genuine competition requires a level playing field where the state is prevented
from unnecessary interference.

• This has resulted in a constant debate about the appropriate level of state
intervention, particularly in areas such as healthcare or pharmaceuticals where
natural monopolies may arise.

Dr. V. Shyam Kishore Alliance School of Law 2


Globalization and Competition Law
• Competition law rules are a form of state intervention that are designed to
prevent participants from 'gaming' the basis of competition itself, either
collectively or unilaterally because they dominate the market/s to such an extent
that effective competition is no longer possible.

• About 140 countries have adopted some form of competition law regime.

• Some degree of convergence happening but countervailing issues of


protectionism also subsists.

Dr. V. Shyam Kishore Alliance School of Law 3


Competition Law in WTO
• To date, efforts to establish a general agreement on competition policy in the framework of the
international trading system have been unsuccessful.

• The Ministerial Conference of the WTO held in 1997 in Singapore decided to establish a group to study the
relationship between competition policy and trade with a view towards introducing competition policy
into the WTO

• The WTO Working Group on the Interaction between Trade and Competition Policy, which considered
the case for a more general agreement on competition policy in the WTO, has been inactive since 2004.

• Nonetheless, provisions relating to competition policy are incorporated in the WTO General Agreement
on Tariffs and Trade (GATT); the General Agreement on Trade in Services (GATS); the Agreement on
Trade-Related Intellectual Property Rights (TRIPS Agreement); the Agreement on Trade-Related
Investment Measures (TRIMs Agreement); and other WTO instruments.

Dr. V. Shyam Kishore Alliance School of Law 4


International Competition Network (ICN)
• Over the past two decades, the ICN has become a preeminent international forum
for cooperation between national competition authorities.

• The concept for the ICN originated out of recommendations made by the
International Competition Policy Advisory Committee (ICPAC), a group formed
in 1997to address global antitrust problems in the context of economic
globalization.

• On October 25, 2001, top antitrust officials from 14 jurisdictions launched the ICN
at a meeting in New York City.

Dr. V. Shyam Kishore Alliance School of Law 5


ICN (Contd…)
• The ICN provides competition authorities with a specialized yet informal venue
for maintaining regular contacts and addressing practical competition concerns.
This allows for a dynamic dialogue that serves to build consensus and
convergence towards sound competition policy principles across the global
antitrust community.

• The organization's achievements span many areas, including merger review, anti-
cartel enforcement, unilateral conduct, competition advocacy, and competition
policy implementation.

Dr. V. Shyam Kishore Alliance School of Law 6


Further Reading:
• Competition Policy, Trade And The Global Economy: Existing WTO Elements, Commit
ments In Regional Trade Agreements, Current Challenges And Issues For Reflection
, Robert D. Anderson, et al.

Dr. V. Shyam Kishore Alliance School of Law 7

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