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Udai S Mehta

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Title: Udai S Mehta


1
Role of Media in Competition Issues
  • Udai S Mehta
  • CIRC - Malaysia Competition Commission Seminar
  • Kuala Lumpur, June 8-9 2013

2
TABLE OF CONTENTS
  • Role of Media and Conditions Precedent
  • Types of Media and Importance of Engagement
  • Print
  • Electronic
  • Social
  • Illustrations/Examples

3
Key Stakeholders in Competition and Reforms
process
POLICYMAKERS, COMPETITION AGENCY, CONSUMER
PROTECTION AUTHORITY, CIVIL SOCIETY, ACADEMIA,
SECTOR REGULATORS, MEDIA, BUSINESS
ASSOCIATIONS, LEGAL FRATERNITY, JUDICIARY, ETC.
4
  • MEDIA ENGAGEMENT NEED AND CONDITION PRECEDENT

5
Media Engagement Need and Importance
  • Help in deciding the pace of decision-making
  • Sometimes policy-making can be overtaken by
    events and developments. Media should be alert to
    these milestones and report the impact on current
    policy stage.
  • Contributing to the content of policy
  • Media should draw on other expertise, to enrich
    discussions that will expand understanding of the
    issues and the different ways of addressing
    these, which could result in revising initial
    drafts of legislation.
  • Alerting the public about how policies are
    implemented
  • Help citizens respond to the issues, so that the
    debate does not involve only those who in
    government but all stakeholders who have an
    interest in the policy question

6
Media Engagement Conditions precedent
  • Availability of trained reporters
  • Capacity building courses for media
  • Willing contributors (articles, reports, etc)
  • Good interaction with institutions (press
    releases, etc)

7
  • TYPES OF MEDIA AND IMPORTANCE OF ENGAGEMENT

8
  • PRINT MEDIA

9
Practical Tips for Reporting Policy Issues
  • Focus on People Numbers and Data is important
    but not useful, if the same is not explained
  • Explain issues regarding the Policy why certain
    decisions have been taken by the Govt?
  • Use illustrations to make your point
  • Beware of who are your readers
  • Writing in Plain Language

10
Practical Tips for Reporting Policy Issues
  • Plain language
  • How can we ensure that the messages are
    well-understood and get out to a large audience?
    By using clear, straightforward language.

11
Example
  • NOT SO PLAIN
  • COMPETITION BUREAU INVESTIGATION LEADS TO FEDERAL
    COURT ORDER PROHIBITING REAL ESTATE BROKER FROM
    PURSUING ANTICOMPETITIVE SALES COMMISSION POLICY
  • OTTAWA, February XX, 2003 - The Federal Court of
    Canada today issued a Consent Prohibition Order
    against the three independently owned Re/Max
    franchises operating in Canada, prohibiting them
    from adopting policies which forbid Re/Max
    brokers and their Sales associates from setting
    commission rates independently and from
    advertising those rates.

12
Example
  • COMPETITION BUREAU SETTLES REAL ESTATE CASE
    INVOLVING CANADIAN RE/MAX FRANCHISEES
  • OTTAWA, February 17, 2003 - The Competition
    Bureau announced today that it has settled a
    price maintenance case involving Re/Max
    Ontario-Atlantic Canada Inc. (Re/Max Ontario),
    Re/Max of Western Canada (1998) (Re/Max Western)
    and Re/Max International Inc. The settlement will
    enhance competition for real estate brokerage
    services and benefit Canadian consumers by
    allowing Re/Max franchisees to advertise
    commission rates or fees to the public.
  • You can see how much shorter and punchier your
    writing becomes with plain language.

13
ELECTRONIC MEDIA
14
ELECTRONIC MEDIAVideo of Cane Farmers, Kenya
15
(No Transcript)
16
https//www.facebook.com/WorldCompetitionDay
17
https//www.facebook.com/WorldCompetitionDay
18
https//www.facebook.com/financialtimes?frefts
19
  • ILLUSTRATIONS/EXAMPLES

20
EVENT REPORTING PRESS RELEASE
  • TITLE
  • Assessing Benefits of Competition Reforms in
    Developing Countries - New Challenging Project,
    Jaipur (India), March 20, 2013
  • INTRODUCTION
  • The global financial crisis, which metamorphosed
    into an economic crisis, has made it necessary
    now for the international community to understand
    how competition reforms can lead to growth and
    innovation, especially given the current
    environment in which markets have to operate,
    said Frederic Jenny, Chairman of the OECD
    Competition Committee.
  • Dr Jenny was speaking at the Inception Meeting of
    a three-year project entitled Competition
    Reforms in Key Markets for Enhancing Social and
    Economic Welfare in Developing Countries
    (referred to as the CREW project
    www.cuts-ccier.org/CREW), being implemented by
    CUTS International. The project is being
    supported by the Department for International
    Development (DFID), UK, and the Federal Ministry
    for Economic Cooperation and Development (BMZ),
    Germany facilitated by the German Agency for
    Technical Assistance (GIZ) for undertaking this
    project.

21
EVENT REPORTING PRESS RELEASE
  • BODY
  • Competition reforms mean much more than legal
    enforcement
  • Competition reforms go far beyond the narrow
    premise of competition law enforcement. In a
    developing country the effectiveness of
    competition reforms process would depend on the
    extent to which it is able to contribute towards
    the larger developmental gains of the country.
    Such outcomes--aimed towards welfare of consumers
    and producers--are far more critical than
    focussing only on better-performing markets in
    many of these countries, asserted Pradeep S
    Mehta, Secretary General of CUTS. This has been
    the underlying principle of all CUTS projects on
    competition so far. However, this would be our
    first attempt ever to develop an approach for
    measuring tangible benefits to both consumers and
    producers of such reform processes. And by
    highlighting these benefits, we would be able to
    further the cause of competition reforms in
    developing countries, Mehta added.
  • Competition policy and law in developing
    countries should also take into account the
    equity factor, and not just focus on
    efficiency considerations, echoed Geeta Gouri
    of the Competition Commission of India, who went
    on to explain that the Competition Act 2002 of
    India clearly mentions economic growth and
    consumer welfare amongst its most important
    objectives in its Preamble.

22
EVENT REPORTING PRESS RELEASE
  • CONCLUSION
  • This meeting attracted the participation of
    nearly 50 delegates from many developing
    countries in Asia and Africa. Experts and
    practitioners from OECD countries were also
    present. Representatives of civil society
    organisations, competition practitioners and
    scholars, competition authorities and others
    discussed possible methods and approaches which
    could be used to assess benefits of competition
    reforms in some of the key sectors like food,
    agriculture, manufacturing, etc.
  • Even though the focus of the CREW project is on
    developing economies in Africa and Asia, the
    meeting also drew experts from the World Bank,
    the Australia Productivity Commission, the UK
    Office of Fair Trading, Overseas Development
    Institute, UK and the like.

23
COLUMN WRITINGFinancial Express Editorial
Competition Matters
  • Issue Arguing from first principles, the only
    reason why a regulatory authority should be
    giving a merger or an acquisition a deep, hard
    look is to ascertain whether it will create or
    lead to monopoly powers in a market that can be
    abused. The current tiff in the finalisation of
    the MA regulations by the Competition Commission
    of India and industry, however, is centred on
    totally different issues. They should, therefore,
    be much easier to resolve as they do not impact
    the regulators ability to scan the deals for
    uncompetitive behaviour. The move by the
    corporate affairs minister Murli Deora to resolve
    the dispute is thus timely, and in the right
    direction.
  • Assessment The trends in the last few years show
    that MA activity in India has slowed down
    substantially, even as it has gained momentum in
    the rest of developing Asia. While the MA deals
    in developing Asia went up from 5,163 in 2007 to
    5,896 in 2010, pushing up the deal value from
    161 billion to 221 billion, the number of deals
    in India has come down from 1,237 to 1,047,
    bringing down the deal values from 45 billion to
    36 billion during the period. MA deals in
    China, for instance, have gone up from 2,626 to
    3,124 in the last four years, taking up the total
    value from 76 to 135 billion.

24
COLUMN WRITING.
  • Assessment The bone of contention is removing
    the asset transaction threshold whereby companies
    will have to report practically on every treasury
    operation, burdening them with procedural delays
    and adding to the Commissions administrative
    costs without any significant addition to
    transparency. The other is that of defining local
    nexus. Companies argue that the Commission should
    come in the picture only if both parties to a
    global MA have an Indian presence.
  • Conclusion If the Commission argues that these
    are only red herrings set up by industry to
    essentially delay the working of the regulator,
    it stands to reason that the clutter should be
    cleared fast. It will then give industry less
    justification to object to sound practice. But
    the long-winded consultation between the
    government and industry has already delayed the
    notification of rules for too long. It is,
    therefore, time we got the regulations issued
    fast.

25
  • usm_at_cuts.org
  • www.cuts-international.org
  • www.cuts-ccier.org

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