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R. S. Khemani - A framework for the design and implementation of competition law and policy

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A dynamic and competitive environment, underpinned by competition law policy, is an essential characteristic of successful market economies. To satisfy the growing demand for information on current approaches and practices in competition law policy, the project Framework for the Design and Implementation of Competition Law-Policy was initiated by the World Bank, with participation by OECD. This ensuing volume reflects the main issues that arise in design and implementation of competition law and policy in order to assist countries in developing an approach that suits their own needs and conditions. The views articulated in this publication suggest that the administration and enforcement of competition law policy should assign the greatest importance to fostering economic efficiency and consumer welfare.

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title A Framework for the Design and Implementation of Competition Law and - photo 1

title:A Framework for the Design and Implementation of Competition Law and Policy
author:Khemani, R. S.
publisher:World Bank
isbn10 | asin:0821342886
print isbn13:9780821342886
ebook isbn13:9780585261423
language:English
subjectRestraint of trade, Antitrust law, Competition--Government policy.
publication date:1999
lcc:K3850.F73 1999eb
ddc:343/.0721
subject:Restraint of trade, Antitrust law, Competition--Government policy.
Page i
A Framework for the Design and Implementation of Competition Law And Policy
Page ii Copyright 1999 The International Bank for Reconstruction and - photo 2
Page ii
Copyright 1999
The International Bank for Reconstruction
and Development/THE WORLD BANK
and the Organisation for Economic Co-operation and Development
The World Bank
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
OECD
2, rue Andr-Pascal
75775 Paris Cedex 16
France
All rights reserved
Manufactured in the United States of America
First printing November 1998
The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors and contributors and should not be attributed in any manner to the World Bank or the Organisation for Economic Co-operation and Development, to their affiliated organizations, or to members of their Boards of Executive Directors or the countries they represent. The World Bank and the Organisation for Economic Co-operation and Development do not guarantee the accuracy of the data included in this publication and accept no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group or the Organisation for Economic Co-operation and Development any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
Library of Congress Cataloging-in-Publication Data
A framework for the design and implementation of competition law and
policy / World Bank, OECD; project director, R. Shyam Khemani.
p. cm.
Includes bibliographical references and index.
ISBN 0-8213-4288-6
1. Restraint of trade. 2. Antitrust law. 3. Competition
Government policy. I. Khemani, R. S. II. World Bank.
III. Organisation for Economic Co-operation and Development.
K3850.F73 1998
343'.0721dc 2198-40938
CIP
Page iii
Contents
Preface
v
Contributors
vii
1. Objectives of Competition Policy
1
2. Market Definition and Assignment of Market Shares
10
3. Agreements
19
Picture 3
Appendix 3.1 Case Study: Prosecution of a Cement Cartel in the Slovak Republic
39
4. Mergers
41
Picture 4
Appendix 4.1 Sample Competitor and Customer Interview Guides
59
5. Abuse of Dominance
69
Picture 5
Appendix 5.1 Case Examples
89
Picture 6
Appendix 5.2 Special Issues of Abuse of Dominance in Transition Economies
91
6. Competition Advocacy
93
Annexes
1. Barriers to Entry
101
2. Efficiency Defenses
124
3. A Framework for Competition Law
141

Page v
Preface
A dynamic and competitive environment, underpinned by sound competition law and policy, is an essential characteristic of a successful market economy. Many developing and transition economies that have undertaken significant market-oriented reforms, such as trade liberalization, privatization, and deregulation, are now also recognizing the need to implement rules safeguarding effective competition. Since 1990 more than 35 developing and transition market economies have enacted or substantially revised competition laws.
The benefits that flow from competition include increased economic efficiency, innovation, and consumer welfare. Effective enforcement of competition law and active competition advocacy can also be powerful catalysts for successful economic restructuring. This in turn fosters flexibility and mobility of resources, which in the current global business environment are critical elements for the competitiveness of firms and industries across nations. Although the field of competition law and policy is evolving rapidly and includes many different viewpoints on specific issues, recognition is growing that effective competition law is important in shaping business culture and that its proper implementation needs to allow for the education of businesspeople, government officials, the judiciary, and the interested public.
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