FILE PHOTO: A shopper choosing canned goods in Brunei in 2019. The Competition Act aims to promote economic efficiency, economic development and consumer welfare. - Sin Chew/ANN
BANDAR SERI BEGAWAN: The Competition Commission of Brunei Darussalam (CCBD) has announced the enforcement of Section 21 and Section 23 of the Competition Act, which relate to the prohibitions of abuse of dominant position and anti-competitive mergers.
The Competition Act is an Act to promote and protect competition in markets in Brunei. It also aims to promote economic efficiency, economic development and consumer welfare. These objectives are central to fostering a pro-business environment and a resilient economy, and are aligned with the broader aspirations of Brunei Vision 2035, which envisions a dynamic and sustainable economy that offers a high quality of life for all.
Section 21 of the Act prohibits conduct by dominant businesses that restricts competition, such as predatory pricing, exclusive dealing, or other behaviour that exploits market power to limit competition or reduce consumer choice.
Section 23, on the other hand, prohibits mergers that result in, or are likely to result in, a substantial lessening of competition, particularly those that create or strengthen a dominant position in the market, which may lead to higher prices or reduced innovation.
The enforcement of these two provisions builds on the earlier implementation of Section 11 of the Act, which came into force on January 1, 2020. Section 11 prohibits anti-competitive agreements, including price-fixing, bid-rigging, market sharing and limiting supply. With the enforcement of Sections 21 and 23, the core pillars of the Competition Act are now fully in effect.
The CCBD encourages businesses to review their commercial practices and ensure compliance with the Competition Act. Fostering a culture of fair competition not only benefits consumers, but also drives innovation and productivity among businesses, contributing meaningfully to national economic progress. - Borneo Bulletin/ANN
