Home | Goldstreet Business
Tuesday, June 6, 2023
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result

Competing Without Market Rules

December 14, 2018
in Uncategorized
0
Share on FacebookShare on Twitter

…the case of Ghana

Rules and regulations are required in every game to ensure fairness. The same principle is applicable to elections, whether conducted locally or nationally. The term “level playing field” is used to ensure that all players in the game or market are subjected to the same rules and operating conditions, such that no one gets an unfair advantage over the other.

RELATED POSTS

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

This also means that the stronger competitor, who is usually the incumbent, does not abuse the incumbency or dominance in the game or market place. Imagine a football match where both teams agree to match-fixing.  Such an act disdains not only the supporters and spectators who go to the stadium to watch the match, but also other teams in the tournament. Again, imagine a football tournament without conduct rules or a referee; offside goals could even be allowed.

The doctrine of fairness applies also to the market place where businesses compete with each other. In markets with sufficient conduct rules (competition law or antitrust law), consumers and market players are protected against conducts that would distort the well-functioning of the market. Where no such law exists, there is the tendency that market players competing against each other can meet to agree on prices (price fixing), split the market so that they do not compete among themselves (territorial allocation) or even reduce output so as to raise prices (output restricting). Such group of players who decide not to compete through such agreements are called cartels. Abuse of dominance happens when a player enjoying a position of strength (dominant player or monopoly) engages in activities that are either intended to drive competitors out of the business(exclusionary practices) or intended to gain more revenue from the customers(exploitative practices). Examples of exploitative practices include charging high prices for goods and services to customers and downstream firms, while exclusionary practices include selling products below cost of production just to collapse competitors (predatory pricings), with prices being raised after competitors have exited the market.

Markets devoid of competition law can also be replete with cartels controlling the supply and manufacture of essential goods and services. Activities of cartels can be so dangerous to the economy in many ways.  They can distort the functionality of the market by limiting production or supply just to spike prices.

Unfortunately, the Ghanaian market is without competition policy and law, which implies that firms can get away by engaging in such conducts. The market forces that have resulted in fierce competition in some sectors can erode profits for firms such that they would see benefits in engaging in anticompetitive practices.  It is important that a competition culture is nurtured through the combined intervention of the policy direction and law.

Competition is a fundamental tenet of well-functioning markets and encourages companies to provide consumers with the products and services that they want. It results in lowering prices for goods and services, better service quality, wider choices for consumers, stimulation of innovation and more importantly, efficiency in allocation of resources.

However,competition does not often come naturally. Tools are needed to force economic agents to behave in a competitive manner, which is the reason why competition regimes are introduced. A competition regime can be characterized by a competition policy and law or only by a competition law, which sets the rules for fair competition for business and punishes delinquency. The objective of a functional competition regime is to promote competition, and contribute towards increased efficiency and curb anti-competitive practices in the market. Anti-competitive practices have negative effects on both consumers and producers.  Certainly, a well-enforced competition regime reduces uncertainty for businesses and is an important element of promoting private sector development.’

A competition law looks at three types of anticompetitive practices, namely a) anti-competitive agreements meant to lessen competition in the market; b) abuse of dominance position; and c)regulation of mergers and acquisitions to prevent tactics to gain excessive dominance in a market.Competition laws also bestow the advocacy function on the competition authority for promotion of competition culture through lobbying government for pro-competition reforms.

In competitive environments, firms are pushed to be innovative and find better and more efficient ways to produce and distribute goods and services. Businesses tend to benefit from a well-enforced competition law, for instance, through cheaper (not overpriced) inputs and indirectly from an enabling business environment.

Competition regime and consumer protection issues reinforce each other. They aim to ensure wider consumer choice in the markets for goods and services, through innovation and efficient resource use by players in the market to promote economic welfare. Further, it endeavours to stimulate effective price competition between suppliers, and deter anti-competitive behaviour.  This helps consumers get real value for their money.

If passed and implemented effectively, empirical evidence and country experience suggests that an effective competition regime can promote private sector development, economic growth and poverty reduction in both developing and least developed countries.  More than 70% of African countries are with competition laws.

Ghana is yet to have a functional competition policy and law. The closest we have come is the Protection Against Unfair Competition Act,2000 (Act 589). Under Act 589,commercial behaviour such as causing confusion with respect to another person’s enterprise or its activities, damaging another person’s goodwill or reputation and misleading the public, were outlawed. The Act 589 does not address the full dimension of competition law. This means that the Ghanaian consumer is vulnerable to exploitation by dominant firms and cartels while significant costs build ups in firms could also be a result of exploitation by upstream dominant firms. The end product would be high prices for consumers.

A competition law is needed as a matter of urgency. CUTS Ghana appreciates the support of the Busac Fund in this advocacy.

Appiah Kusi Adomako is the Country Coordinator for CUTS International Ghana. CUTS Ghana is a research and advocacy public policy think tank which works in the areas of consumer protection and education, economic regulation, trade and development, regional integration,competition policy and law, etc. CUTS can be contacted through | Office:+233-30-224-5652 | Email: apa@cuts.org, Website: http://www.cuts-international.org/ARC/accra

By Appiah Kusi Adomako, CUTS Ghana

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

May 15, 2023
Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

May 15, 2023

44% of Ghana’s workforce multidimensionally poor

May 9, 2023
Fitch Solutions forecasts 43% depreciation of cedi to dollar in 2022

Cedi to end 2023 at ¢12.40 to a dollar – Fitch Solutions

May 9, 2023
“How Did I Get Here” premieres on GHOne TV & DSTV Channel 361

“How Did I Get Here” premieres on GHOne TV & DSTV Channel 361

May 9, 2023
Next Post

Image Consortium launches maiden ‘Construction and Property Awards’

Eurofinsa Ghana supports Infanta Malaria Prevention Foundation

Archives

<
May 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
  12345
6789101112
13141516171819
20212223242526
2728     
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

May 15, 2023
Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

May 15, 2023

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.