CUTS>CITEE>7 Up Project> Project Progress Reports> Annexure D

ANNEXURE D

Action plan: Phase II

Discussions at the afternoon meetings of 6th & 8th Sept generated an outline action plan for Phase II of the 7-Up project.

Phase II research should run concurrently with the end of Phase I. The first part of the research, a questionnaire on cross-border competition concerns for competition agencies and stakeholders, should be conducted during October and November. Draft results should be collated and presented at the next interim meeting to be held on 15th December in Jaipur. Case studies would be conducted subsequently after further discussion to take place at the interim meeting.

The partners approved the broad outline of a questionnaire and three case studies and agreed that this was a manageable volume of work for Phase II. The next step is to finalise the questionnaire. Partners can then use the questionnaire and November NRG meeting to identify, along with national stakeholders, the case studies that they will take up.

The research outline was designed to reflect the cross-border concerns that are of most relevance to the project countries and to allow for comparability between the countries.

There will be two parts to the research

1.       Preliminary questions covering cross-border issues.

2.       Three case studies:

i.                     Case study on an international merger (as far as possible, same case in all countries)

ii.                   Legal-economic case study of one sector (as far as possible, same case in all countries)

iii.                  Legal-economic case study on a sector (to be chosen by the partner)

a.       Preliminary Questionnaire on Cross-border Concerns

A questionnaire will be prepared and distributed to the partners by 1st October 2001. [See separate document]. This questionnaire will be targeted at stakeholders and will seek to reveal the incidence of cross-border competition abuses; nature (cartels, abuse of dominance through IPR etc.); sectors in which these occur. The responses will feed into the selection of case studies. The second stage will be deeper research on the way these abuses have been handled by the Competition Authority and collection of all available materials relating to the actions taken by the CA.

Interviews should be begun immediately on receipt of the questionnaire and preliminary results will be discussed at the Symposium on Competition to be held in Geneva on 12th &13th October. Interviews should be completed by mid-November and results presented, along with suggestions for case studies, at the Partners’ meeting on 15th & 16th December. An NRG meeting would be held by the end of October as part of this research.

Where the questions require information on the results of an investigation etc., the partner should provide such public information as is available from the CA. The partner should prepare an accessible digest of the case in lay-man’s language. It was noted that this could be a problem in Kenya where only the judgement in a case is made public and not the deliberations.

Some concern was expressed that in a country like Tanzania where the CA does not yet have experience of competition cases, the information that could be generated would be very limited. This information in itself is useful to the research. Where there have been no legal cases, the partners could orient the studies toward analysing whatever information is available, and to assessing the ways in which international cooperation could be useful.

 b.       Case studies (3)

The topics and methodologies for the case studies will be developed in more detail at the Interim meeting on Dec 15 and in the light of interview results and discussions at the NRG meetings.

1.      Case study on international merger

CA investigation of an international merger: CocaCola/Cadbury Schweppes

[If this merger was not investigated by the CA, researcher should select another international merger that may/may not have been investigated by the CA or a national case involving transnational companies]

i.                     What prompted the investigation?

ii.                   How was the investigation conducted?

iii.                  What problems were encountered in collecting information?

iv.                 Was any cooperation with CAs of other countries sought? 

v.                   What was the outcome of the investigation?

vi.                 Were any conditions were imposed? Which?

vii.                What kind of international cooperation would have helped the CA in this case?

2.       Sector competition audit case study [Legal and economic documentation]:

Cement

i.                     What is the structure of the sector?

ii.                   What competition concerns exist in this sector, involving either domestic/international firms?

iii.                  Is there any evidence of collusive behaviour by international firms affecting the sector?

iv.                 Has there been any M&A activity in the sector, either domestic or cross-border?

v.                   Has the sector/any firms been investigated by the CA?

vi.                 If not, why not?

vii.                If yes, what prompted this investigation?

viii.              What were the results of the investigation?

ix.                 What problems were encountered during the investigation?

viii.              What kind of international cooperation would have helped the CA in this case?

3.       Sector case study [Legal and economic documentation]

Each partner should select a sector that raises important cross-border competition concerns in that economy. e.g. telecommunications, banking, pharmaceuticals, road transport etc. This case study should analyse the nature of the concerns and the impact these have had in the economy. The study should include analysis of the economic impact on the sector.

i.                     What is the level of concentration in the sector? Market structure, penetration etc.

ii.                   What level of FDI penetration is there? What are the regulations on foreign firms operating in the sector?

iii.                  Prices/supply/quality/choice in the product markets over time

iv.                 What is the regulatory environment for the sector?

v.                   What are the competition concerns in the sector? All cross-border/some domestic?

vi.                 Has the sector been examined by the CA?

x.                   What prompted this investigation?

xi.                 What were the results of the investigation?

xii.                What problems were encountered during the investigation?

xiii.              Was there any regional/international cooperation in the investigation?

ix.                 What kind of international cooperation would have helped the CA in this case?

vii.                What impact has there been of any action taken by the CA? Short- & long-term.

CUTS>CITEE>7 Up Project> Project Progress Reports> Annexure D

 

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