Book Cover 1
Half-Title 2
Title 4
Copyright 5
Contents 6
Figures 8
Tables 9
Contributors 11
Preface 13
Abbreviations 15
1 Perspectives on competition policy: an overview of the issues 18
INTRODUCTION 18
COMPETITION POLICY OBJECTIVES 21
A FRAMEWORK FOR COMPETITION POLICY 24
SOME ISSUES 26
IMPLEMENTATION 29
NOTES 30
REFERENCES 31
2 The evolution of competition law in East Asia 32
INTRODUCTION 32
EVALUATING THE EFFECTIVENESS OF COMPETITION LAW 33
COMPETITION POLICY IN JAPAN 35
The Antimonopoly Act 36
Recent changes to Japan\u2019s antitrust system 39
An evaluation of Japan\u2019s competition policy 41
COMPETITION POLICY IN CHINA 42
The Unfair Competition Law 43
The Price Law 44
Regional and sectoral regulations 45
An evaluation of China\u2019s competition policy 45
COMPETITION POLICY IN HONG KONG 48
An evaluation of Hong Kong s competition policy 49
LESSONS FROM EAST ASIA 51
CONCLUSION 53
NOTES 53
REFERENCES 56
3 Implementing an effective competition policy: skills and synergies 58
INTRODUCTION 58
DEFINING TERMS 58
Competition policy and economic regulation 58
Implementing 59
CHARACTERISTICS OF EFFECTIVE COMPETITION POLICY AND REGULATION 60
The policy environment 61
Objectives of competitive policy and economic regulation 63
Principles 66
Processes 69
ORGANISATIONAL SKILLS AND CULTURE 71
Skills 71
Culture 72
SYNERGIES 73
CONCLUSION 76
NOTES 77
REFERENCES 77
4 Competition policy, economic development and the possible role of a multilateral framework on competition policy: insights from the WTO\u2026 78
INTRODUCTION 78
THE RELEVANCE OF COMPETITION POLICY FOR DEVELOPING ECONOMIES 80
Facilitating a supply-side response to trade liberalisation and reinforcing domestic reforms 82
The advocacy function of competition agencies 83
THE ROLE OF COMPETITION POLICY IN ADDRESSING INTERNATIONAL ANTICOMPETITIVE PRACTICES 84
Competition policy, dynamic efficiency and the \u2018policy space\u2019 available to developing countries 87
Summary: why external liberalisation is not, by itself, sufficient to ensure the efficient functioning of markets 89
POSSIBLE RATIONALES FOR INTERNATIONAL COMMITMENTS ON COMPETITION POLICY 90
A MULTILATERAL FRAMEWORK FOR COMPETITION POLICY? 93
NOTES 97
REFERENCES 99
5 Competition in electricity markets 104
INTRODUCTION 104
EARLY REFORMS IN THE ELECTRICITY INDUSTRY 104
Ending the monopoly in power generation 105
Regulating the industry 109
INCREASING PRIVATE SECTOR PARTICIPATION 111
ONGOING PROBLEMS IN THE PHILIPPINE ELECTRICITY INDUSTRY 115
Privatising the NPC 116
Inefficiencies in energy distribution 120
CONCLUSION 125
NOTES 127
REFERENCES 128
6 Telecommunications 130
INTRODUCTION 130
OVERVIEW OF POLICY 131
Sequencing of competition and privatisation 131
Sequencing of market opening 131
Restrictions on further entry 132
Rules on foreign participation 132
GATS and actual policy 133
Policy and actual practice 133
Adoption of the Reference Paper 133
COMPARING TELECOMMUNICATIONS POLICIES 134
IMPACT OF POLICY ON PERFORMANCE 138
FACTORS AFFECTING PERFORMANCE 141
Impact of new technology 143
Administrative practice 144
Service quality 145
CONCLUSION 147
NOTES 148
REFERENCES 149
ANNEX 6.1: POLICY INFORMATION BY ECONOMY 150
Australia 150
A. Background: 150
B. Local services (including leased lines): 150
C. Long distance services: same as local services. 151
D. International services: same as local services (resale and callback permitted). 151
E. Mobile services: 151
Canada 151
A. Background: 151
B. Local services (including leased lines): 151
C. Long distance services: same as local services. 152
D. International services: same as local services (resale and callback permitted). 152
E. Mobile services: same as local services. 152
China 152
A. Background: 152
B. Local services (including leased lines): 153
C. Long distance services: same as local services. 153
D. International services: same as local services (resale and callback not permitted). 153
E. Mobile services: 153
Hong Kong 154
A. Background: 154
B. Local services (including leased lines): 154
C. Long distance services: not relevant. 154
D. International services: competition (resale and callback permitted). 154
E. Mobile services: competition. 154
Indonesia 154
A. Background: 154
B. Local services (including leased lines): 155
C. Long distance services: 155
D. International services: 156
E. Mobile services: 156
Japan 156
A. Background: 156
B. Local services (including leased lines): 157
C. Long distance services: same as local services. 157
D International services: same as local services (resale and callback permitted). 157
E. Mobile services: same as local services. 157
Korea 157
A. Background: 157
B. Local services (including leased lines): 158
C. Long distance services: competition (with foreign equity limitations the same as local limitations). 158
D. International services: competition (resale permitted, callback not permitted). 158
E. Mobile services: competition (with foreign equity limitations the same as local limitations). 158
Malaysia 158
A. Background: 158
B. Local services (including leased lines): 159
C. Long distance services: same as local services. 159
D. International services: same as local services (resale and callback not permitted). 159
E. Mobile services: same as local services. 159
New Zealand 159
A. Background: 159
B. Local services (including leased lines): competition. 160
C. Long distance services: same as local services. 160
D. International services: same as local services (resale and callback permitted). 160
E. Mobile services: same as local services. 160
Philippines 160
A. Background: 160
B. Local services (including leased lines): 160
C. Long distance services: same as local services. 161
D. International services: same as local services (resale permitted, callback not permitted). 161
E. Mobile services: same as local services. 161
Singapore 161
A. Background: 161
B. Local services (including leased lines): 161
C. Long distance services: not relevant. 162
D. International services: same as local services (resale and callback permitted). 162
E. Mobile services: competition. 162
Taiwan 162
A. Background: 162
B. Local services (including leased lines): 162
C. Long distance services: same as local services. 163
D. International services: same as local services (resale permitted, callback not permitted). 163
E. Mobile services: same as local services. 163
Thailand 163
A. Background: 163
B. Local services (including leased lines): 163
C. Long distance services: monopoly (TOT). 164
D. International services: monopoly (resale and callback not permitted). 164
E. Mobile services: competition. 164
United States 164
A. Background: 164
B. Local services (including leased lines): 164
C. Long distance services: same as local services. 165
D. International services: same as local services (resale and callback permitted). 165
E. Mobile services: same as local services. 165
Vietnam 165
A. Background: 165
B. Local services (including leased lines): 165
C. Long distance services: same as local services. 166
D. International services: same as local services. 166
E. Mobile services: duopoly. 166
7 The airline industry 167
INTRODUCTION 167
THE KEY CHARACTERISTICS OF THE AIRLINE INDUSTRY 170
COMPETITION POLICY AND CONSUMERS 173
AIRLINE DEVELOPMENTS IN SELECTED APEC ECONOMIES 174
Australia and New Zealand 174
China 175
Hong Kong 177
Japan 177
Malaysia 178
Philippines 179
South Korea 180
Taiwan 181
AIRLINES IN THE WTO DOHA ROUND 181
EMERGING REGIONAL DEVELOPMENTS 183
US bilateral open skies initiatives 183
The plurilateral or club approach 184
An open skies bloc for Northeast Asia? 185
ASEAN 186
APEC 186
CONCLUSION 187
NOTES 188
REFERENCES 190
8 The shipping industry 193
INTRODUCTION 193
LINER SHIPPING\u2014130 YEARS OF INTERNATIONAL CARTELS 194
THE SHIPPING LINER INDUSTRY IN ASEAN 197
Government policy to promote local shipping industries 198
National and regional shippers\u2019 councils 200
REGULATION OF INTERNATIONAL SHIPPING LINERS 203
SHIPPING CARTELS AND THE WTO 203
GATS negotiations 204
The competition policy agenda 205
CONCLUSION 207
NOTES 207
REFERENCES 208
9 The insurance industry 209
INTRODUCTION 209
MARKET STRUCTURE AND PERFORMANCE 210
Structure 210
Performance 213
REGULATORY FRAMEWORKS 218
Indonesia 220
Malaysia 222
Philippines 224
Singapore 226
Thailand 227
COMPETITION POLICY IN THE INSURANCE INDUSTRY 229
NOTES 235
REFERENCES 235
10 The interaction between contract and competition law 238
INTRODUCTION 238
CONTRACTS AND ENFORCEMENT 239
THEORY AND HISTORY OF CONTRACT ENFORCEABILITY 240
CONTRACTS, SPOT MARKETS AND VERTICAL INTEGRATION 243
COMPETITION LAW, CONTRACTS AND VERTICAL RESTRAINTS 245
LONG-TERM CONTRACTS, SPECIFIC INVESTMENTS AND AUTHORISATION 246
NEW ZEALAND EXAMPLES 249
Kapuni 249
Telecom New Zealand vs Clear 250
CONCLUSION\u2014STRIKING THE APPROPRIATE BALANCE BETWEEN CONTRACT AND COMPETITION LAW 251
NOTES 252
REFERENCES 254
11 Regional cooperation in competition policy 256
INTRODUCTION 256
DEVELOPING NATIONAL AND REGIONAL CULTURES FOR COMPETITION 258
The current attitude to competition 258
A culture for competition 259
WINNERS AND LOSERS 261
The intersection of trade and competition law 262
A SHARED REGIONAL PHILOSOPHY ON COMPETITION POLICY AND ITS ENFORCEMENT 263
BARRIERS TO REGIONAL HARMONISATION 265
Developing a regional consensus 265
Loss of control 266
Nationalism and national champions 267
THE PRACTICAL DETAILS OF REGIONAL COOPERATION 268
Policy development 268
Legislation and the form and extent of agreement 270
Administration and enforcement 271
Elements of a cooperative regional culture\u2014what is the bare minimum? 272
Who should take the lead? 273
The beginnings\u2014sharing information 273
Medium-term possibilities 274
The type of regulatory agency 274
The impact of globalisation 275
CONCLUSION 276
NOTES 280
REFERENCES 282
Index 283