| Institution of Economic Competition Rules |
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| mardi, 10 août 2004 | |
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The guarantee of a healthy competition on all the markets is a means of fighting against inflation. Indeed, to attract and fidéliser the customers, a company may find it beneficial to offer products or service at a price low possible taking into account obviously the costs to which it must face and of the quality of the product or service. Competition prevents also acquisition by only one group an economic capacity too important, prejudicial with the political and social balance of a country. The right of the competition aims to prevent any attempt at distortion to competition and to sanction very contravening. It is a question of avoiding:
1°) the abuse dominant position: The dominant position of a company is characterized by the fact that it is practically the only one to offer a product or a service on a given market. The abuse which the right of the competition sanctions consists in preventing that other concurrent companies develop on this market. The accused company wants to tend towards a monopoly, situation in which it will garner with it only important profits. 2°) the illicit agreement: In this situation, 2 or several companies are intended to divide the market by offering the same products or services at prices which they agree between them BY ADVANCE. They also agree to prevent other competitors from entering on this market to offer competitor products or services, or to eliminate the other competitors which are already on the market in question. 3°) concentration: It is the case of a company which starts to repurchase other companies to control them and obtain a dominant position on a given market. That can also be the case of 2 or 3 companies which amalgamate to become only one company which will dominate the market. CONCLUSION: In the 3 quoted cases, the goal is to be in quasi-monopoly and to completely control the price of a product or a given service and to profit from the profits which results from this. The State in its role of guard of the interest general, must take care that the citizen-consumers are not obliged to contribute to the increase in the richness of only one company or group of companies. NOTE: No Malagasy government, including this one, wanted to set up a legislation of competition. The citizens must wonder why. The actions of the State aim to ensure or preserve the interest general. However we have a president, head of undertaking, which must, and it is logical, to take care of the particular interest of its business. How can it reconcile the 2 types of interests? There is what is called a conflict of interests (between the interest general which aim all the citizens and the particular interest of only one company). Irony of the history, the ENAM left its first promotion police chiefs to competition whereas no legislation of competition was voted by the French National Assembly! |
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