2.8. Competition Authority vs. Sector Regulators

To strengthen the forces of competition in the market, both competition law and policy (to be enforced by Competition Commission) and market regulatory laws (to be enforced by the regulator) are required. These complement each other. The difference between the two forms of intervention in the market process lies in their nature. A regulator tells the firms what these have to do. A regulator examines issues of technology, cost and process in the industry regulated by it. Competition Authority, on the contrary, tells the firms what they should not do

i.e. price fixing, predatory pricing, cartels, discriminatory treatment etc. The role of the Competition Authority is that of an adjudicator, which acts against anti-competitive practices. The separation between the ex-ante functions (the regulator’s domain) and adjudicatory functions is not perfect and therefore characterized by confusion and disputes in regard to turf.

Further, a sector regulator has a narrow focus, whereas the competition authority has an economy wide remit. The differences in domain also result in differences in views and create tensions between the competition authority and the sector regulator. Not only is there a need to encourage cooperation between the competition authority and sector regulators, there is a need to review the formally legislated working arrangements between the sector regulators and the competition authority to ensure coordination and avoid conflicts of jurisdiction and needless turf battles.