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Competition Act

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Competition Act is a primary legislation to promote and protect competition in markets in Brunei Darussalam.

The Act has the objectives to enhance economic efficiency and to improve consumer welfare through prohibiting and preventing unfair and unhealthy commercial conducts. Specifically, it prohibits three key conducts which are (i) Anti-Competitive Agreements; (ii) Abuse of Dominant Position; and (iii) Anti-Competitive Mergers.

The Competition Act will be enforced in phases starting with the prohibition of Anti-Competitive Agreements. This phased approach serves to give all parties sufficient time to prepare for the orderly enforcement of this Act.
The Act is aimed to provide incentives for businesses to be innovative, efficient and productive; provide business opportunities; and create a pro-business and pro-investment climate for better Foreign Direct Investment (FDI) outlook.

Summary of Key Provisions:

Part / Section / Schedule
​PART II, First and
Second Schedule
​Competition Commission of Brunei Darussalam​Competition Commission of Brunei Darussalam ("CCBD") is established with a mandate to enforce the Competition Act.

Commenced 1 August 2017
​Section 10​Scope of Application​The aforementioned prohibitions will apply to any person, individual, body or entity conducting commercial or economic activities across sectors with the exception to Government, Statutory Bodies and activities listed under Third and Fourth Schedule.
​Section 11
​Anti-Competitive Agreements
​This section prohibits any kinds of agreement that has an object or effect to prevent, restrict or distort competition in Brunei Darussalam. It is also known as cartel.

Commenced 1 January 2020
​Section  20
​Block Exemption
​Block exemption may be granted for a particular category of agreement on the basis that a category of agreement fulfils the criteria set out under section 20 of the Act.
​Section 21
​Abuse of Dominant Power
​Any conducts that constitute as an abuse of dominant position is prohibited such as predatory pricing, limiting production or applying dissimilar conditions to equivalent transaction. This section applies when dominance and abusive conduct have been established.
​Section 23
​Anti-Competitive Merger​This section prohibits mergers that result to a substantial reduction in competition.
​Section 35 - 38
​Power to Investigate
​CCBD can conduct investigation if there are reasonable grounds to believe that there is one or more breach of section 11, 21 and 23 prohibitions.
​Section 42(4)​Financial Penalty​A financial penalty can be imposed up to 10% of annual turnover in Brunei Darussalam for each year of infringement, for a maximum of 3 years.
​Section 44
Leniency Regime​
​Penalty may be reduced up to 100 per cent if a business admits to an infringement, and provides information or cooperation that assists significantly or is likely to assist significantly in investigations or identifications of other businesses.
​Section 45
​Acceptance of an Undertaking
​CCBD may accept a proposal by an undertaking for a “settlement” arrangement that would address the infringement under investigation. If it accepts, the investigation will be closed and penalty shall not be imposed.
​Part IV,
Section 62
​Other Offences
​Those who deny access to records etc; give false or misleading information, evidence or document; destruct, conceal, mutilate or alter records; obstruct the works of an authorized officer; engage in tipping off activities; use threats or reprisals to prevent disclosure, are all guilty of an offence.
​Part V
​Competition Appeal Tribunal
​Any agreement, conduct or merger that has already been decided by CCBD can appeal, except decisions on imposition or sum of financial penalty, and will be heard before Competition Appeal Tribunal.
​Section 62
​Power to conduct Market Review
​CCBD has the power to conduct a market review for the purposes of detecting any activity that restricts, prevents and distorts competition.

Commenced 1 August 2017
​Section 67
​Rights of Private Action
​Any person who suffers loss or damage directly as a result of an infringement shall have a right of action for relief in civil proceedings in a court against any undertaking.
​Third Schedule
​Exclusion from Section 11 and 21​Activities excluded from the prohibition of Anti-Competitive Agreements and Abuse of Dominant Position.
​Fourth Schedule
​Exclusion from Section 23
​Mergers excluded from the application of the Act.