With a view to expand the scope, quality, and transparency of its case handling, the Commission for the Supervision of Business Competition, or ‘KPPU’, recently issued Regulation No. 1 of 2010 on Case Handling Procedures, giving greater discretion to the KPPU to explore and monitor cases that it determines to be of interest with relation to upholding Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition (Law 5/1999).
Much as before, the KPPU is given authority conduct research: literature studies, field research, focus groups (potentially with various stakeholders), and so on. This regulation gives the KPPU authority to propose or amend a policy on the basis of that inquiry, or to move on to a broader investigation. Further supervision is likely in the event that: (1) one or a group of business actors controls upwards of 50% of a given market share, (2) two or three actors or groups control upwards of 75% of a given market share, or (3) a potential violation of Law 5/1999 could take place.
Businesses under supervision will be included in the ‘List of Business Actors Under Supervision,’ and monitoring of those businesses includes: price and supply monitoring, interviews or meetings with related individuals, soliciting information from competitors and the government, and asking for submission of bi-annual reports from businesses.
On the KPPU’s part, supervision reports describing the findings of monitoring activities must be circulated internally on a regular basis, so as to determine whether a case should be further processed. Contrary to the previous (2006) regulation on this matter, in the event that a case is processed further, Article 43 of the regulation mandates that all court hearings be open to the public.
According to the current (2010) regulation, the KPPU can ‘encourage’ healthy, fair business practices by giving rewards to business that have not violated Law 5/1999 in the last three operational years. Though it requires an implementing regulation to elaborate further how the process will work and what the rewards will be, it raises no shortage of questions.
This regulation repeals and replaces (1) KPPU Regulation No. 1 of 2006 on Case Handling Procedures in the KPPU, and (2) KPPU Regulation No.2 of 2008 on the Authority of the Commission Secretariat in Case Handling. However, all ongoing cases for which a decision is still pending will be handled in accordance with the 2006 regulation’s case handling guidelines.
This regulation was enacted on 5 January 2010, but will take force starting 5 April 2010.
With a view to expand the scope, quality, and transparency of its case handling, the Commission for the Supervision of Business Competition, or ‘KPPU’, recently issued Regulation No. 1 of 2010 on Case Handling Procedures, giving greater discretion to the KPPU to explore and monitor cases that it determines to be of interest with relation to upholding Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition (Law 5/1999).
Much as before, the KPPU is given authority conduct research: literature studies, field research, focus groups (potentially with various stakeholders), and so on. This regulation gives the KPPU authority to propose or amend a policy on the basis of that inquiry, or to move on to a broader investigation. Further supervision is likely in the event that: (1) one or a group of business actors controls upwards of 50% of a given market share, (2) two or three actors or groups control upwards of 75% of a given market share, or (3) a potential violation of Law 5/1999 could take place.
Businesses under supervision will be included in the ‘List of Business Actors Under Supervision,’ and monitoring of those businesses includes: price and supply monitoring, interviews or meetings with related individuals, soliciting information from competitors and the government, and asking for submission of bi-annual reports from businesses.
On the KPPU’s part, supervision reports describing the findings of monitoring activities must be circulated internally on a regular basis, so as to determine whether a case should be further processed. Contrary to the previous (2006) regulation on this matter, in the event that a case is processed further, Article 43 of the regulation mandates that all court hearings be open to the public.
According to the current (2010) regulation, the KPPU can ‘encourage’ healthy, fair business practices by giving rewards to business that have not violated Law 5/1999 in the last three operational years. Though it requires an implementing regulation to elaborate further how the process will work and what the rewards will be, it raises no shortage of questions.
This regulation repeals and replaces (1) KPPU Regulation No. 1 of 2006 on Case Handling Procedures in the KPPU, and (2) KPPU Regulation No.2 of 2008 on the Authority of the Commission Secretariat in Case Handling. However, all ongoing cases for which a decision is still pending will be handled in accordance with the 2006 regulation’s case handling guidelines.
This regulation was enacted on 5 January 2010, but will take force starting 5 April 2010.
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