| Competition Act, Chapter 253

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The Competition Act is the 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

Key provisions of the Competition Act and their respective scope.

Part II, First and Second Schedule

Competition Commission of Brunei Darussalam

The Competition Commission of Brunei Darussalam 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. These are also known as “cartels”.

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 fulfills the criteria set out under section 20 of the Act.

Section 21

Abuse of Dominant Position

Any conduct that constitutes 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 35 – 38

Power to Investigate

CCBD can conduct investigations if there are reasonable grounds to believe that there is one or more breach of sections 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 three (3) years.

Section 44

Leniency Regime

Penalty may be reduced up to 100% if a business admit 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 authorised 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.