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What you should know ?

6 août 2007, 00:00

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Has the cabinet agreed on the content of the Competition Bill?

More discussions will be necessary before the adoption of the bill by the cabinet ? and its introduction in Parliament. The main bones of contention appear to be the monopoly of public institutions like the Central Electricity Board (CEB) or the Central Water Authority (CWA). Another issue seems to be the choice of the chief executive officer of the Competition Commission, the regulatory body. The choice of a foreigner has been mentioned for a more impartial and neutral image of the commission.

Could the CEB and CWA be dismantled because of their monopolistic situation?

This has been the subject of lively discussions but it was clearly said that the dismantling of a monopoly should in no way cause a problem to the population.

What are the criteria to decide whether a company is in a situation of monopoly?

According to the bill, a monopoly is reached when a company has a certain amount of market shares. As for the mass marketing sector, this amount has been fixed to 30%. However, a company may have more than 30% of market shares but may not be in a situation of monopoly. This is why the commission is important. It will be the one to decide if a company is abusing its position.

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