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The focus of competition law is traditionally the private rather than the public sector. Yet, market activities by the public sector can fall under competition law. When this is the case, is influenced by two factors: market liberalisation and regional economic integration. In the EU the reach of competition law has thus constantly been fine-tuned by the Court which has arguably broken down national protectionism, but also led to conflicts with public/social policy objectives. ASEAN does not have a supranational competition law, instead ASEAN Member States have introduced domestic regimes many of which contain a broader variety of exemptions. Does this approach hinder economic integration or are the exemptions potentially beneficial to public service delivery? Is it possible to identify an ASEAN approach? This chapter provides a fresh take on this little-researched area of the relationship between state bodies, in particular public services providers, and competition law in ASEAN.
In spite of the ASEAN goal of harmonising national competition policies and laws, the ASEAN Member States (AMSs) adopt an array of different approaches towards a number of procedural and substantive competition law issues, including the substantive appraisal of vertical agreements. The question of whether, and if so how, analysis of vertical agreements under the competition laws of the AMSs should be aligned has, to date, received little attention from ASEAN competition agencies. The Chapter concludes that although greater harmonisation of policies towards vertical agreements might be desirable, it will be a challenge to achieve within the existing national systems without some legislative changes and significant cooperation between the ASEAN competition authorities. Given the different perspectives that the separate legislative regimes reflect, debate will be required to build consensus around a more uniform approach that can effectively be implemented within each of the national systems.
EU attempts to resolve competition law enforcement issues arising from the decentralised enforcement framework envisaged in Reg 1/2003 may be of interest to ASEAN Economic Community (AEC) on its journey towards creating a single market based on operational and effective competition rules. First, this chapter will assess, in the absence of EU wide harmonisation, the framework for the enforcement of EU competition law by NCAs generally and, then, in the UK and Ireland, in particular. It will further highlight how divergence in enforcement practice is being addressed by the Commission’s DG-Comp. Secondly, this chapter will assess the scope for divergent substantive rules and norms in terms of EU law under Art 3 of Regulation 1 with specific reference to the competition law provisions of the UK and Ireland. Perhaps the best encouragement for AEC offered by the EU story is the ECN’s success in securing voluntary convergence, throughout a region composed of diverse legal traditions and values, by means of a consensus building approach. Recent developments in the proposed Draft Directive to impose minimum harmonised enforcement toolkits for all NCAs offers a salutary lesson that the appropriate level of convergence depends on the perceived importance of uniformity and divergence in any multi-State competition law enforcement network context.
As part of the establishment of the ASEAN Community and the ASEAN Economic Community, the ASEAN Member States must implement the commitments detailed in a new blueprint, the ASEAN Economic Community Blueprint 2025. As with the earlier blueprint in 2015, this blueprint had also included competition-related commitments, both at national and regional levels. This chapter discusses the regionalisation of competition regime in ASEAN by looking at these three questions:
1. Why are the ASEAN Member States motivated to develop a regional competition regime?
2. How are the ASEAN Member States going to develop a regional competition regime?
3. When will the regional competition regime be established and implemented?
This chapter observes ASEAN’s preference for the soft law approach, recognising and respecting the ASEAN Way, which has been dominating its work to develop and establish a regional competition regime. However, ASEAN and its Member States must commence work on establishing a regional competition regime based on the hard law approach for greater certainty for businesses and investors. This can only be achieved with strong institutional arrangement and support at both the regional and national levels.
The signing of the Kuala Lumpur Declaration on 22 November 2015 by the ten ASEAN members has reaffirmed the goals of the ASEAN Economic Blueprint 2015 and its objectives towards fulfilling the 2025 Blueprint for an ASEAN single market. Currently, works are in progress on regional competition law based on the ASEAN Regional Guidelines on Competition Policy drafted by the ASEAN Experts Group on Competition (AEGC). At the national level, nine of the ten ASEAN member states have enacted their competition laws. While this is an encouraging development of ASEAN competition law, with the parallel development on ASEAN market integration, many challenges remain. One important concern, which is the focus of this paper, is the presence of State-owned enterprises (SOEs) in the ASEAN member states. SOEs, occupying positions of market dominance and enjoying government support, can create difficulties to the application of national and ASEAN competition law, thereby slowing the process of ASEAN market integration. This paper evaluates the impact of SOEs on ASEAN’s pursuit towards market integration with particular reference to Singapore, Malaysia and Thailand.
This chapter first outlines different models of regional cooperation in competition policy and law from around the world, and argues that deep and effective regional cooperation in competition law enforcement does not necessarily require a binding regional competition law regime and a regional competition enforcement body with supranational powers. The chapter then studies three major challenges faced by the ASEAN member states in the development of a regional competition law, namely differences between levels of economic development of the member states, different political traditions and legal systems and, differences in competition culture of the member states. This review includes a discussion on the suitability of the solutions tailored by other regional blocs for similar challenges. The chapter concludes with a summary of findings and recommendations for the ASEAN region.
Competition policy has become an important issue for the member states of the ASEAN region as a result of their efforts to integrate their national markets into the ASEAN Economic Community. Competition policy has thus become a closely intertwined part of the economic regionalisation which these countries are seeking to achieve. This chapter traces the evolution of regional Competition policy in the ASEAN region, examining the ASEAN Economic Blueprint(s) and Regional Guidelines that provide the member states with strategic goals to implement. The developmental trajectory of Competition policy in ASEAN is analysed and the challenges that lie ahead, if harmonisation between their national competition law regimes is to be achieved, are critically discussed in this chapter. The major regional documents and institutional actors responsible for driving ASEAN's regional Competition policy are also introduced in this chapter, along with concise summaries of the myriad of related issues which are addressed in the other chapters of this book.
The ASEAN nations have put in place strategic measures and mechanisms to establish effective competition law regimes for all remaining ASEAN Member States which do not have implemented competition laws. Traditionally, implemented competition laws in the ASEAN region are divided between “standalone” or “purist” competition laws aimed solely at maintaining competitive markets; and competition laws with trade law elements mixed within, i.e., competition laws incorporating consumer protection and fair trade elements. The challenge for businesses operating in multiple jurisdictions in the ASEAN region lies in complying with not only the different implemented competition laws, but also in navigating the varying degrees of enforcement of these national competition laws. This paper discusses the diversity of the implemented national competition laws and competition policies in the ASEAN region and the challenges this diversity poses to companies operating in multiple jurisdictions within the ASEAN region.
The European Union is the home of the most experienced supranational competition law system of the world. Hence, other regional integration systems often look at the EU as a role model for designing their regional competition policies. However, this does not necessarily argue in favour of a ‘copy-and-paste’ adoption of the European framework. ASEAN has chosen to implement a regional competition policy framework as part of its project to create an ASEAN single market and an ASEAN Economic Community. However, ASEAN’s approach to competition law is limited to convergence. This Chapter discusses whether and to what extent ASEAN should now go a step further and ‘transplant’ the EU competition law framework. The answer depends on a number of considerations such as the goals of creating a supranational competition law, the degree and potential of economic integration of the national economies, the level of economic development of these economies, the development of a competition culture in these countries, the comparative advantages of centralised and decentralised enforcement and the willingness of ASEAN countries to surrender sovereignty in the field of competition law.