Competition in the Fijian Market

The goals of sectoral regulations differ considerably from sector to sector.

In telecommunication, electricity and gas, one goal of sectoral regulation is usually to open these sectors to competition.

International competition days are observed in various areas of governance to focus attention of the society towards the vital issues.

Such observances in the developing world are always helpful to accelerate the agenda to realise the potential benefits from an effectively implemented competition regime and also play their role in making competition regimes work worldwide.

It is critical that focus on competition policy and law issues at an international level be strengthened.

This can be achieved through the adoption of a World Competition Day. December 5, 2017 marks the World Competition Day and this article sheds light on the goal of competition in Fiji.

The level of competition in Fiji comprises of the service, price and selection. Having a high degree of competition in Fiji will benefit the economy as whole in the following ways; Competition makes the economy work betterby enforcing competitive laws that shall drive the economy to expand.

The Fijian Competition and Consumer Commission (FCCC), as a competition agency ensures that the market is competitive. The below details some of the business practice that FCCC deals with:

Merger and acquisition is the joining of two or more companies or organisation so that they can operate as one legal entity. Mostly mergers tend to benefit the consumers by enabling business to operate more efficiently through achieving economies of scale and risk spreading.

However, at times mergers tend to be harmful for the competition in the market by resulting in higher prices, fewer choice to choose from and goods and service of lower quality.

Therefore, FCCC analyses the potential effects on the level of competition in Fiji market of the proposed merger based on a certain criterion. FCCC may correct for the competition-reducing effects of mergers through structural and behavioural remedies

A monopoly exits when a single supplier controls a product or service in a market. The FCCC ensures that the dominant firms do not abuse their market power. Industries that are monopoly or near monopoly are regulated by FCCC.

The FCCC regulates the prices of such industries to ensure that critical and essential monopoly institutions product price is pegged at a level which would closely resemble the price which would prevail should there be a competitive market.

Competition advocacy is defined as those activities conducted by the FCCC related to the promotion of a competitive environment by means of non-enforcement mechanisms, mainly through relationships with other governmental entities and by increasing public awareness on the benefits of competition in the Fijian market.

Competition makes the economy work betterby enforcing competitive laws that shall drive the economy to expand.