Prsentation PowerPoint

free pricing and competition law PRESENTED BY : MAHNINE Zakaria1OUTLINENOTIONS OF FREE PRICING SYSTEM AND COMPETITION

THE LAW REGARDING FREEDOM OF PRICING AND COMPETITION

REFORMS OF THE LAW

CASE OF PRICE WAR : THE EDIBLE OIL MARKET

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NOTIONS OF FREE PRICING SYSTEM AND COMPETITION

3NOTIONSFREE PRICING SYSTEM

mechanism of resource allocation that relies upon monetary prices set by the interchange of supply and demand. The resulting prices serve as signals communicated between producers and consumers which serve to guide the production and distribution of resources.

4NOTIONSCOMPETITION the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.

COMPETITION LAWlaw that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement.

5THE LAW REGARDING FREEDOM OF PRICING AND COMPETITIOn6THE LAW N 06-99 In Morocco THE ACT N 06-99 regarding freedom of pricing and competition is a legislative text which :

Defines the provisions governing freedom of prices and organizes free competition. Defines the rules for protection of competition in order to stimulate economic efficiency and improve the well-being of consumers.

Aims to ensure transparency and loyalty in trade relations7PRESENTATION OF THE LAW Title I: Scope of applicationTitle II: Freedom of PricesTitle III: Anti-competitive practicesTitle IV: Operations of economic concentrationTitle V: The Competition CouncilTitle VI: Restrictive Practices of competitionTitle VII: Special Provisions of products and services for which the price is regulatedTitle VIII: investigations and sanctions.Title IX: Transitional provisions and other provisions.

8 PROVISIONS OF THE LAWPROMOTING THE FREE MARKETThe law No. 06-99 has established the principle of freedom of prices and of the free access to all sectors and markets. strengthened the conditions for a healthy and fair competition by the prohibition of anti-competitive practices or behaviors to distort the game.

prohibited the agreements on prices or on the division of markets, and the abuse of dominant position that occupies an operator or a group of operators in a market.

9PROVISIONS OF THE LAW SMALL BUSINESSES AND AGRICULTURAL DEVELOPMENT

certain categories of agreements are allowed when they intended to improve the management of small businesses or the commercialization by the farmers in their products.

These agreements can be recognized as satisfactory to the conditions intended after the opinion of the Competition Council

10PROVISIONS OF THE LAW CONSUMER PROTECTION

In article 99, the law has recognized for consumer associations that are recognized for public service the right to form a civil party or obtain the redressement on the basis of a civil action that is independent of the prejudice suffered by the consumer.11PROVISIONS OF THE LAW SPECIAL MENTIONS:

article 8 introduces two exceptions to anti-competitive practices:The first area of concern relates to the practices resulting from a legislative or regulatory texts. The seconds are intended the agreements which have the effect of ensuring a economic progress without restricting competition. 12THE COMPETITION COUNCIL Created in 2008, the Moroccan institution is responsible of combating the anti-competitive practices and studying the functioning of markets.

Its two main sources of law are the Law on the freedom of prices and competition and the Law on the council of competition.

The CC is composed of 12 members all of them are named by the head of the government.13the SHORTCOMINGS OF THE LAWOn the antitrust front, the Competition Council only had consultative powers, all decisions and measures had to be adopted by a government department, the Directorate for Competition and Prices (DCP)

The cooperation difficulties between the Competition Council and the Directorate for Competition and Prices since that CC opinions or advices were rarely followed by the adoption of concrete measures by the DCP

14THE SHORTCOMINGS OF THE LAW the scope of entities that could initiate an action on the basis of competition law was very narrow, which in practice rendered these kind of actions almost non-existent.

difficulties in relations between the CC and other regulatory bodies, which are an essential tool for competition authorities to play their regulatory role.15REFORMS 16OVERVIEW2014 has marked a significant turn for competition law in Morocco, with the adoption of the Law No. 104-12 on Freedom of Prices and Competition and Law No. 20-13 on the Competition Council (the Reform) on 30 June 2014.

Although the laws were promulgated in the Official Journal on 24 July 2014 (Arabic version) and on 7 August 2014 (French version), their entry into force was granted by the adoption of the decree n2-14-652 of 8 safar 1436 (December the 1st, 2014)

17THE COMPETITION COUNCIL The Reform has enriched the consultative powers of the CC by allowing it to give its opinion on any question regarding competition, and to publish studies on the general competitive situation at a sectorial or national level. Thereby, the CC may conduct sector enquiries.

the CC has been granted investigation, decision-making and fining powers both for anti-competitive practices and merger control, which leads Moroccan competition law into a new era.

18PRICE WAR IN THE EDIBLE OIL MARKET#PRICE WAR IN THE EDIBLE OIL MARKETIn 2006, LESIEUR-CRYSTAL and SAVOLA were accusing each other of unfair competition.

Lesieur Cristal has, from the first year of the biennium of Savola Morocco, accused the subsidiary of the Saudi Arabian group of dumping.

SAVOLA criticized the subsidiary of the ONA (SNI) of practicing conditional sales and denounces the practices of hypermarkets such as Marjane who have refused to reference the oil Al Arabi, last product of Savola placed on the market.

#PRICE WAR IN THE EDIBLE OIL MARKETThe investigation conducted by the CC and the ministry in charge of general and Economic Affairs on the market of the edible oil, concluded that there was definitely a practice of selling at a loss by SAVOLA, which has distorted the competitive operation of the oils market table.

Savola has been condemned by the tribunal to remove its labelling corn on the cob and to pay compensation of 20,000 dirhams to Lesieur Cristal

#CONCLUSIONThe question is whether the CC will, in practice, have the material means and be in a position to enforce its ambitious policy, and in particular ensure a true independence and manage the relations with the government, which has in the past played a key role in many cases19