The Competition Order 2015, a law that prohibits business practices which restrict a fair competition process in a market and to promote and maintain fair as well as healthy competition to enhance market efficiency and consumer welfare in Brunei Darussalam, will be enforced on January 1, 2020.
The law, covering all commercial entities across the sectors in the country, allows businesses to make adjustments during the transitional period from January 1 to June 30, 2020, only for agreements that were made before June 1, 2019.
Details of the Competition Order 2015 and the function of Competition and Consumer Affairs Department (CCAD) were outlined at a dialogue session titled ‘An introduction of Competition Order 2015 toward a more Efficient Market and Sustainable Growth’ at the Atria Simpur Hall, Public Works Department (JKR) Headquarters.
The dialogue session was organised by PUJA Academy Sdn Bhd with the support of Competition Commission Brunei Darussalam (CCBD) and the Ministry of Development (MoD) and in collaboration with Brunei Institution of Surveyors, Engineers and Architects (PUJA) Brunei.
Featuring Competition Advisor Dr Hassan Qaqaya from the Melbourne Law School as the main speaker, the dialogue session was an initiative to create awareness and understanding on the Competition Order 2015, a law that promotes market efficiency and consumer welfare in Brunei Darussalam’s economic landscape.
The law serves to prevent businesses from restricting fair competition processes in a market through the prohibition of anti-competitive conducts, namely Anti-Competitive Agreements (Cartels), Abuse of Dominant Position and Anti-Competitive Mergers.
The dialogue began with opening remarks by Acting Director of Competition and Consumer Affairs Heidi Farah Sia binti Abdul Rahman, representing the Executive Secretariat to the CCBD.
She highlighted the importance of understanding the objectives and scope of the Competition Order towards promoting self-compliance to foster a healthy business environment to create more opportunities and room for business to grow.
Senior Economic Officer Nurulizzati binti Haji Jahari from the Department of Competition and Consumer Affairs covered the key prohibitions in detail, with references made to some regional competition cases.
She highlighted the four don’ts under section 11 of Anti Competitive Agreement (Cartels) namely price fixing (agreeing to fix or maintain price (verbal or written agreement) and keep prices high compared to a competitive market as well as sharing market information like pricing, profit, through associations / informal discussions), bid rigging (any agreement (written or oral) between bidders that limit or reduces competition in a tender and bidders agree among themselves who should win the tender and at what price), market sharing (divide up consumers by geographical area or consumer type and agree not to compete as well as consumer forced to pay more with less choice) and limiting supply (agreeing to limit the quantity of goods or services) and keep prices high by limiting supply of goods (artificial shortage).
The Abuse of Dominant Power under Section 21 and Anti-Competitive Merger under Section 23 will be enforced at a later stage.
Heidi Farah, meanwhile, explained the power of CCBD which are the power to investigate (access information and document), power to accept undertaking and commitment (settlement) and power to design remedy and sanction (alter behaviour/conditions, cease order, fine not exceeding 10 per cent business turnover in Brunei for a maximum of three years).
The key takeaway are companies should take their business decisions independently of their competitors, arrangement with competitors that restrict competition are illegal and your compliance will build business growth, reputation and a healthy business environment.
The presentation was followed by an interactive discussion with the participants on matters including the application of the law to trade/professional associations; recommended fees; and policy coherence with the objectives of the law.
Legislative Council member and Chair of the CCBD Yang Berhormat Nik Hafimi binti Abdul Haadii, PUJA members, local business owners, private sector representatives as well as government officials were present.
The event concluded with a presentation of a token of appreciation to CCBD Executive Secretariat by PUJA Vice-President and Chairman under the Engineer Division Haji Mohammad Zin bin Haji Mohd Salleh.