1. Capacity Building within CARIFORUM on Competition Policy David Miller – Executive Director May 5, 2016 Promoting competitive markets FAIR TRADING COMMISSION INSTITUTIONAL DESIGN OF COMPETITION AGENCIES

2. OUTLINE Competition Policy Main Pillars of Competition Policy Main Functions of Competition Agencies Benefits of Competition Law Institutional Design Decision Making Body 2

3. INSTITUTIONAL DESIGN OF COMPETITION AGENCIES Definition The manner in which the effectiveness of a Competition Agency is embedded or encoded in its infrastructure given their multiplicity of responsibilities. Objective Create a structure that facilitates maximum effectiveness & efficiency given limited resources. 3

4. Competition law - which reflects the Government's position on trade within national borders; Regulation - reflects the Government's position on markets which are perceived as requiring an oversight and interventionist framework; Privatization - reflects the Government’s position on the transferring of the ownership of a business from the Government to the private sector; International trade policy - governs trade across national borders; 4 C OMPETITION P OLICY

5. National Industrial Policy (NIP) - describes the Government's strategy to offer preferential treatment to specific sectors of the economy; Intellectual Property Rights (IPR) - which includes the law pertaining to patent, copyright, trademark and geographical indication, that establishes the exclusive right for individuals to use IPRs for commercial gain. Consumer Protection - encourages only conduct which promotes consumer welfare. 5 C OMPETITION P OLICY

6. 6 MAIN PILLARS OF COMPETITION POLICY Abuse of DominanceCollusive AgreementsMergers & Acquisitions

7. 7 MAIN FUNCTIONS OF COMPETITION AGENCIES EnforcementAdvocacyPublic Education

8. TAGLINES 8 CountryTagline AustraliaBe fair & competitive BotswanaFair competition & prosperity Colombia & UNCTADProsperity for all GambiaLeveling the field for development PakistanCreating a level playing field PolandYou have a choice South AfricaTowards a fair & efficient economy for all UKMaking markets work US FTCProtecting America’s consumers

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10. BENEFITS OF COMPETITION LAW Competition provides the proper incentives for merchants to offer consumers quality products at the most affordable prices Under competitively organized markets Prices are lower Output is higher Product choice is greater Rate of technical innovation is higher, relative to markets which are not competitively organized 10

11. INSTITUTIONAL DESIGN Sound Infrastructure Necessary Characteristics Legal Framework Internal Processes & Procedures Investigative Process Operations Decision Making 11

12. NECESSARY CHARACTERISTICS Accessible Accountable Adequate Powers Confidentiality Consistent Communicate Credible Effective Timely Evaluate Fair Independent Information Exchange Integrity Objective Real Relevant Transparent 12 AGENCY EVALUATION

13. Legal Framework Legislation Provisions that properly define the scope & effect of the policy Institution with administrative and investigative responsibilities Oversight Board responsible for administration and policy direction – separate from Staff, to prevent regulatory capture. Tribunal or Hearing Structure Treaty Obligations 13

14. Internal Procedures, Processes & Guidelines Management Accounting Investigative Clearly Defined PROCEDURAL FAIRNESS 14

15. Investigative Process Case Selection – prioritizing cases Clearly Defined Thorough Separation of Investigative & Adjudicative Functions -in legislation -in procedures and processes 15

16. Agency Operations Administrative, Legal & Economics Departments Investigations Conduct market studies Competition advocacy Public education Staffing Ethical matters Budget & Financing Adherence to Procedures, Processes, Guidelines 16

17. 17 DECISION MAKING BODY 1 person Commissioners or Tribunal: Collegial Court Required Skills: Legal, Economics, Management, Business operations

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19. Quality Proper Monitored Adequate Deterrence effect Effective 19 Decisions

20. 20 Thank you Promoting competitive markets Fair Trading Commission 52-60 Grenada Crescent Kingston 5, Jamaica Telephone: 960.0120-4 Facsimile: 960.0763 Email: ftc@cwjamaica.comftc@cwjamaica.com Website: jftc.gov.jm www.facebook.com/ftc.jamaica