ADVOCACY WORKING GROUP

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1 ADVOCACY WORKING GROUP

2 ADVOCACY WORKING GROUP STRUCTURE: 13 competition authorities OECD UNCTAD CUTS ICC LEGG ABA Objectives: Develop a Report on Advocacy Enhance effectiveness of Competition Advocacy

3 QUESTIONNAIRE ON COMPETITION ADVOCACY Sent to 64 ICN members in March, Authorities from 50 countries responded It identifies important trends in the advocacy role of Competition Authorities

4 44 Questions distributed in 7 sections: - The Competition Authority - General Advocacy - Advocacy in Regulatory and General Framework - Sector Specific Advocacy - International Dimension of Advocacy - The Advocacy Team within The Competition Authority - Improving The Advocacy Role of The Competition Authority

5 REPORT ON COMPETITION ADVOCACY DEFINITION: COMPETITION ADVOCACY REFERS TO THOSE ACTIVITIES CONDUCTED BY THE COMPETITION AUTHORITY RELATED TO THE PROMOTION OF A COMPETITIVE ENVIRONMENT FOR ECONOMIC ACTIVITIES BY MEANS OF NON-ENFORCEMENT MECHANISMS, MAINLY THROUGH ITS RELATIONSHIPS WITH OTHER GOVERNMENTAL ENTITIES AND BY INCREASING PUBLIC AWARENESS OF THE BENEFITS OF COMPETITION.

6 QUESTIONNAIRE Responses were divided into 2 categories utilizing the UNCTAD classification of development. Main difference between the advocacy role of competition authorities in developed and developing countries: level of competition culture Other differences: - Decision-Marking Structure - Ability to introduce competitive elements in regulation and privatization processes - Experience

7 REPORT ON ADVOCACY Structure: Executive summary A conceptual framework Competition advocacy as seen by ICN members

8 COMPETITION ADVOCACY 2 Categories: Activities directed to other public authorities Activities directed to other constituencies AIM: Raise the awareness of the benefits of competition and the role of the competition authority.

9 RESULTS - DIFFERENT STRUCTURES LEVEL OF AUTONOMY 2. PARTICIPATION IN REGULATORY AND LEGISLATIVE PROCESSES - Timeliness - Binding Consultation - Transparency of Advocacy Initiatives

10 RESULTS 3. SECTOR-SPECIFIC REGULATORS - Elimination of exemptions - Competition concerns in Regulatory Framework 4. SECTORS TARGETED BY ADVOCACY - Mostly public utilities - Telecomunications, electricity, transport and financial services

11 RESULTS 5. COMPETITION CULTURE - Related to the experience of competition authority A strong competition culture is due to: - Participation in regulatory and privatization processes - Long experience with competition policy - Cases with significant media coverage - Existence of specialized competition tribunals - Publication of decisions and Case studies - Interaction with universities

12 A weak competition culture is due to: - Recentness of competition legislation - Lack of experience by courts - Lack of acceptance by authorities and economic agents - Interventionist economic policies

13 RESULTS 6. ATTITUDES TOWARDS COMPETITION ADVOCACY: Support by: - Academic community - Consumer associations - Media - NGO s Opposition By: - Business associations - Local goverments - Labor unions

14 RESULTS 7. INTERACTIONS BETWEEN ENFORCEMENT AND ADVOCACY - Advocacy encourages enforcement by raising awareness about competition. - A proper enforcement raises credibility level of advocacy activities.

15 RESULTS 8. ADVOCACY WITHIN THE AGENCIES: - Difficult to draw a line between advocacy and enforcement activities. - 33% of personnel involved in advocacy activities. - 20% - 30% of resources devoted to advocacy.

16 RESULTS 9. IMPROVING ADVOCACY: - Greater autonomy - Mandatory consultation - Transparency of consultation procedure - Disseminate the benefits from competition - Promote competition issues through websites and press releases.

17 RESULTS 10.INTERNATIONAL DIMENSION OF ADVOCACY - Support from international organizations and other competition authorities. - Technical assistence, seminars and expert meetings. * FUTURE WORK