Competition Law and Policy. Special TUTORIAL FOR BANKERS Presented at the INTERNATIONAL LAW INSTITUTE. Layout of Presentation. Definition Objectives Brief Background International Competition Policies Competition Law and Policy in East Africa. Competition Law and Policy - Definitions.
Special TUTORIAL FOR BANKERS
Presented at the INTERNATIONAL LAW INSTITUTE
Dates back to Roman Empire where Roman
Legislators tried to control price fluctuations and
unfair trade practices.
Business practices of
market traders were
severe sanctions were
given to traders
dealing in unfair
Today, the 2 most
regulation are the
Antitrust law and
the European Union
Agreements or coordination of
market behavior of firms with the
objective or effect of preventing,
restricting or distorting competition.
Eg Agreements that directly or indirectly fix purchase or selling prices or any other conditions that eg limit production.
For cartels to be prohibited, competition has to be negatively affected to a considerable extent.
2. Abuse of Dominant Position
A company holds a dominant position when it can behave independently from both competitors and consumers who have limited possibilities to react to such behavior.
Competition law thus deals with control of firms that have dominant positions in an industry.
Abuse includes eg charging prices or imposing terms that are unjustifiably burdensome, working in ways that impede market access by other competitors or induce them to abandon their operations.
3. Mergers and Acquisitions
that the financial sector was also to be
subject to the anti-trust law regime.
finance through lower interest rates for
loans and lesser collateral requirements
as banks fight for customers.
Entrance and Maintenance Regulations
minimal occurrence of anti-competitive behavior.
or early warning systems are implemented
as prompt corrective action.
permitted branches in the same Area.
banking, branching is more relaxed.
Banks so as to authorize alterations.
Discretion of the Banking Regulator
Inter Bank Agreements