COMPETITION & CONSUMER PROTECTION COMMISSION Competition & Consumer Protection Commission INTER-DEPARTMENTAL COOPERATION AND GOVERNMENT SUPPORT IN REGULATION (2 ND ACER WEEK, 8 TH -12 TH MARCH, 2016, LIVINGSTONE) By Masauso Phiri

Outline of the Presentation  Introduction  Regulatory Framework  Departmental Cooperation-CCPC Experience  Investigation Workflow  Government Support  Conclusion 02/03/2016Competition and Consumer Protection Commission2

Introduction  Many developing countries liberalized their economies in the 1980s and 90s- Privatized state owned enterprises and commercialized public water, railway and power utilities etc.  Laws were enacted to regulate different sectors of the economy and to provide for the regulatory agencies e.g. ZWMA (weights), ZICTA (ICT), CCPC (Competition & Consumer Welfare), ZABS (Standards)  Many regulatory agencies face resource challenges i.e. lack of adequate expertise such as legal, financial resources –There is a need to use resources efficiently and effectively such as enhancing cooperation between the legal and investigative departments of the regulatory agency.  Regulatory agencies may sometimes face political pressure to curtail investigations or change recommendations-Advocacy can help mitigate political pressure 9/5/2014 Competition and Consumer Protection Commission 3

Regulatory Framework  Economic and technical regulation frameworks are basically generic across the world. Laws enacted to govern the conduct of market players, penalties & remedial actions. Establishment of the regulatory agency for each given sector. Decisions of regulatory agencies can be subjected to the courts of law. 9/5/2014Competition and Consumer Protection Commission 4

REGULATORY FRAMEWORK-CCPC 9/5/2014Competition and Consumer Protection Commission 5

DEPARTMENTAL COOPERATION-CCPC EXPERIENCE  Regulatory agencies have investigative (e.g. CCPC has the Consumer Protection and Mergers & Monopolies) and legal departments.  Investigative departments are usually manned by non-legal professionals.  Investigations are usually initiated and concluded (including recommendations) by the investigative departments and legal is only involved if there is an appeal to the courts of law by a party.  Some appeals border on simple technicalities rather than on the actual substance of the findings-Loss of time, resources and prestige.  CCPC redesigned the workflow and the legal department is involved in the investigations by having them examine the evidence gathered and conclusions drawn from the said evidence.  The proposal is that all investigative departments engage their respective legal departments from the start especially in investigations that may result in sanctions being imposed on market players 9/5/2014 Competition and Consumer Protection Commission6

INVESTIGATION WORKFLOW 9/5/2014Competition and Consumer Protection Commission7  COMPLAINT RECEIVED/INTERVETION (STAGE I) Complaint authorized for investigation and assigned to the appropriate department. Investigating Department involves Legal in drafting the investigation plan and ensuring that procedure is followed. Departments cooperate to determine what evidence is required and how it will be obtained.

INVESTIGATION WORKFLOW  MATTER INVESTIGATED/DETERMINATION/DIRECTIVE (STAGE II) Investigating Department involves Legal in drafting the investigation plan and ensuring that procedure is followed. Departments cooperate to determine what evidence is required and how it will be obtained. Report done by Investigating Department and submitted to Legal Department for review. Recommendations sent to the regulator’s Board for determination after internal review by Legal Department and approval by the head of the regulator. 9/5/2014Competition and Consumer Protection Commission8

INVESTIGATION WORKFLOW  APPEAL/COURT PROCESS (STAGE III) Board Determination served on parties Parties don't/or appeal to the courts Legal Department represents the regulator 9/5/2014Competition and Consumer Protection Commission9

GOVERNMENT SUPPORT  Threat of political pressure is always there in developing countries.  Market players can lobby the government to curtail regulatory actions  Regulatory agencies should always engage in advocacy aimed at key government officials and the public-Demonstrate welfare gains.  Aim to inculcate a culture of awareness on the role of regulators.  Public awareness helps keep the government and regulatory agencies active and accountable. 9/5/2014Competition and Consumer Protection Commission10

Conclusion Enhanced cooperation between the Investigative departments and the Legal department would result in positive changes with the regulators increasing their chances of success even before the courts of law. Increased advocacy targeted at the state officials and the general public would ensure that the regulators investigations and interventions are supported and not curtailed. 9/5/2014Competition and Consumer Protection Commission11

THANK YOU FOR YOUR ATTENTION AND GOD BLESS YOU 9/5/14 Competition and Consumer Protection Commission12