Economic Governance Series II - The Strength of Competition Policy and Regulation in the Arab Region

59 Pages Posted: 15 Jul 2016

See all articles by Denise Sumpf

Denise Sumpf

United Nations Economic and Social Commission for Western Asia (UNESCWA)

Vladimir Isaila

United Nations Economic and Social Commission for Western Asia (UN-ESCWA)

Date Written: June 14, 2016

Abstract

The present paper summarizes the finding of the survey on competition policy strength in Arab countries. For this first of a kind analysis, UNESCWA used the established OECD instrument to complement the existing global dataset on competition policy and to provide decision-makers in the Arab countries a reference measure for achievements and gaps related to competition policy, legislation and institutional structures. Building on the 2013 OECD study on Competition Law and Policy, the UNESCWA survey applies the same indicators, seeking to assess the scope, legal framework and enforcement capability of competition regimes in the Arab region.

The results of the survey discussed in the previous chapters highlight that there is a clear push towards the development of competition regimes in the region and that the efforts in the Arab region are strong in comparison with the OECD average. The legal and procedural frameworks underpinning national competition policy have seen multiple reforms in the past decade, increasing the scope of activity, the investigative and enforcement powers of competition authorities in the region. Spearheaded by reforms in Morocco, Tunisia and Egypt, other countries are beginning to re-evaluate the role of antitrust regulation.

Nonetheless, the survey also shows the need for improvement in terms of independence of competition authorities, procedural fairness as well as enforcement concerns. With the exception of Tunisia, all other countries have not investigated or imposed sanctions on some or all antitrust infringements related to mergers, horizontal and vertical agreements, or exclusionary conducts. Most competition authorities surveyed are nominally independent, though subject to government interference in certain aspects of the decision-making, investigative and sanctioning process. Furthermore, issues of transparency and fairness in the application of antitrust measures are observed. Decisions on antitrust infringements are often not disclosed, while the publication of investigative and decision-making processes is limited in a number of countries.

In the broader context of economic governance in Arab countries, the paper testifies to the commitment of some Arab countries towards establishing better policies and the authors hope the paper contributes towards building a sustainable and fair “competition culture” to the benefit of all people in the Arab region.

Keywords: Competition policy, Arab region, survey

JEL Classification: D4, L4, P51, P52, Y1

Suggested Citation

Sumpf, Denise and Isaila, Vladimir, Economic Governance Series II - The Strength of Competition Policy and Regulation in the Arab Region (June 14, 2016). Available at SSRN: https://ssrn.com/abstract=2809569 or http://dx.doi.org/10.2139/ssrn.2809569

Denise Sumpf (Contact Author)

United Nations Economic and Social Commission for Western Asia (UNESCWA) ( email )

P.O. Box 11-8575
Riad el-Solh Square
Beirut
Lebanon

Vladimir Isaila

United Nations Economic and Social Commission for Western Asia (UN-ESCWA) ( email )

P.O. Box 11-8575
Riad el-Solh Square
Beirut
Lebanon

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