Project Title

Seminar on Investigative Powers of Competition Agencies 

Project Year

2016   

Project Number

CPLG 01 2016A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Completed Project   
View Budget TableView Budget Table
|
PrintPrint

Project No.

CPLG 01 2016A 

Project Title

Seminar on Investigative Powers of Competition Agencies 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2016 

Project Session

Session 1 

APEC Funding

99,968 

Co-funding Amount

23,220 

Total Project Value

123,188 

Sponsoring Forum

Competition Policy and Law Group (CPLG) 

Topics

Competition Policy; Deregulation 

Committee

Economic Committee (EC) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru 

Co-Sponsoring Economies

Japan; Philippines; Singapore; United States; Viet Nam 

Expected Start Date

01/06/2016 

Expected Completion Date

30/06/2017 

Project Proponent Name 1

Rosa Cabello (new PO wef 22 December 2016) 

Job Title 1

Manager, Technical Cooperation and Institutional Relations 

Organization 1

INDECOPI 

Postal Address 1

Calle de la Prosa 104, San Borja, Lima, Perú 

Telephone 1

51-1 2247800-4601 

Fax 1

Not Applicable 

Email 1

rcabello@indecopi.gob.pe 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Rosa Cabello 

Project Summary

This project will organized two day workshop in Viet Nam, in which economies will exchange experience regarding the development of investigative powers of competition agencies in order to implement more effective mechanism against anticompetitive conducts. The implementation of competition policy provides markets with a framework that encourages market discipline, eliminates distortions and promotes economic efficiency, which are the main objectives of the CPLG.

It is essential that competition authorities have the necessary powers to investigate effectively suspected competition law infringements. To that end, the Authorities must have appropriate fact-finding tools at their disposal which enable them to require such information to be supplied and to undertake such investigations as a necessity to bring to light an infringement of the competition rules.

The purpose of this seminar is to facilitate information sharing in developing investigative powers to restore the competitive process among APEC member economies; in order to identify, evaluate, apply and improve best practices against anticompetitive conducts in the region, which will contribute to stimulate balanced and sustainable growth, reducing inequality, approaching to the regional economic integration, which is one of the main priorities under APEC 2016 central theme “Quality Growth And Human Development”.

The main objectives of this seminar are:

1) Exchange experiences and share information on investigative powers, as a tool to fight anticompetitive practices in APEC Economies.

2) Identify best practices.

3) Prepare a framework to improve the application of investigative powers in APEC economies.

4) Share experiences using Forensic Software, as a tool to gather evidence of anticompetitive behavior.

This Project seeks to promote regional economic integration and is directly related to RAASR.  Rank 1

Relevance

The existence of anticompetitive conducts harms society by making output lower, prices higher, discourages the innovation and generates inequality, decreasing the benefits of a competitive market, such as productivity and growth. 

Investigative powers aim primarily to empower the competition authorities to initiate formal investigations and exercise their investigative powers to the full, on the basis of perceive anti-competitive outcomes. Anticompetitive market affects mainly the less advantaged thus increasing the gap between rich and poor. In this context, investigative powers work as a tool to find and fight these behaviours, restoring the competitive process. 

In this sense, sharing experience of the development and implementation of investigative powers in different economies may contribute to promote regional economic integration, as well as to promote competitive markets, collaborating in this way to reduce inequality. It is important to mention that this project will address developing economies needs in this matter.

Also, economies will present the different tools they use in their respective agencies, in order to get a clear idea of the tools that each competition agency manages, focusing in Forensic Software. 

What we propose is to analyze in detail the pros and cons of each of the tools that different competition authorities have, the importance of them, including the use of technological tools, more modern and effective mechanisms, in order to identify best practices and implement, where possible, the best tools and more effective methods used in the region. “Investigative powers” will include, for example, dawn raids and forensic tools. Also we would like to analyze the dispute between the Right to Access to Information of the Authorities, in order to protect Competition, versus the Right of Personal Information. It is important to mention that for the development of this project, we will co-ordinate with the Best Practices Project that the US is currently overseeing not only to avoid overlapping, but also to deepen and complement the topics discussed. 

In addition, in 2014, APEC Leaders in Beijing, China, stated “to meet our objective of strengthening the implementation of good regulatory practices, we will further enhance communications, exchanges and sharing experiences, and foster an open and transparent regulatory environment in our economies, according to individual economies’ needs and circumstances”. 

Also, APEC Leaders endorsed the APEC New Strategy for Structural Reform (ANSSR) that aims to promote balanced and sustainable growth by fostering transparency, competition and better functioning markets in the Asia-Pacific, goals that can be achieved with properly implemented anti-competitive measures. 

This proposal directly links to Rank 1, Projects that demonstrate a direct link to promoting regional economic integration via free and open trade and investment.

Objectives

1) To exchange experiences in competition policy issues related to fighting anticompetitive conducts in APEC economies.

2) To identify best practices.

3) To increase knowledge and build capacity building in the developing of investigative powers for competition authorities.

4) To create a framework in order to assure the correct development and implementation of investigative powers.

5) To share experiences using Forensic Software, as a tool to gather evidence of anticompetitive behaviour.

Alignment

Competition policy is an important action of the Osaka Action Agenda (adopted in 1995, amended in 2002) and, is one of the priority areas for structural policy reform of LAISR. 

This project directly responses to APEC´s key priorities: 

Priorities under APEC 2016 Central Theme “Quality Growth and Human Development”, Advancing Regional Economic Integration and Quality Growth. 

In 2015, Structural Reform Ministerial Meeting (SRMM) encourages member economies to undertake a self-assessment of barriers to competition, including a review of current competition laws and policies. Also, agreed that “structural reform, if implemented correctly, can provide for enhanced inclusion until now underrepresented groups, firms and regions by providing more opportunities to participate in and benefit from a growing economy. We support policies that are pro-development, strengthen markets, promote trade and investment, improve access to goods, services and labor markets, facilitate linkages to global value chains, and build resiliency against various shocks to advance inclusive growth”. 

Also, RAASR states to undertake reforms to “reduce inequality and stimulate growth in their economies, and contribute to APEC´s overarching goal to promote balanced, inclusive, sustainable, innovative and secure growth, through measures in line with well-functioning competitive markets(…)” 

In 2014, APEC Leaders in Beijing, China, stated “to meet our objective of strengthening the implementation of good regulatory practices, we will further enhance communications, exchanges and sharing experiences, and foster an open and transparent regulatory environment in our economies, according to individual economies’ needs and circumstances”. 

Therefore, this project is fully compliance with APEC priorities and SRMM instructions. 

The Economic Committee (EC) considers competition policy and law one of the key cross-cutting means by which to promote more open, well-functioning, transparent and competitive markets. 

APEC's Competition Policy and Law Group (CPLG) works to promote an understanding of regional competition laws and policies, to examine the impact on trade and investment flows, and to identify areas for technical cooperation and capacity building among member economies.

TILF/ASF Justification

This project is sought through the APEC Support Fund, which supports capacity-building need for APEC developing economies in accordance with high-priority areas for economic and technical cooperation. As noted above, this project fit in line with the Renewed APEC Agenda for Structural Reform (RAASR), by helping to facilitate more transparent and competitive markets, since the implementation of appropriate investigative powers is intended to gather evidence of behaviors that harm the competitive process. 

The project aims to achieve, among others, betters understanding and/or acknowledgement in using forensic tools to fight and reduce completion misbehaviors. The sharing knowledge, best practices and experiences from advanced APEC economies and lessons learnt will be disseminated to developing APEC economies, contributing to further capacity enhancement those economies.

Beneficiaries and Outputs

Outputs: Outputs of the project include:

1) 1 workshop for competition agencies, officials and private sector;

2) A statement with best practices identified; and

3) A framework to improve the application of investigative powers in APEC Economies. 

Outcomes: Expected outcome of the project include:

1) Improved understanding / acknowledgement of the benefits of implement appropriate forensic tools as new investigative powers.

2) Improvement of skills of regulators and business in identifying evidences of anticompetitive conducts.

3)  Experiences, best practices and knowledge on investigative powers, shared among APEC member economies.

4)  APEC economies may introduce new and strong investigative power, or new tools to fight anticompetitive conducts and/or restore the competitive process. 

Beneficiaries: It is important to mention that many of APEC Member economies are aware of Competition Best Practices, but they often do not have the resources or knowledge-base to compare their laws and enforcement policies to these Best Practices, or to familiarize themselves with the jurisprudential and economic thinking behind them.  For this reason, knowledgeable staff from all APEC competition authorities or other entities with deep knowledge of actual or draft competition laws and regulations will be invited to present self-assessments in-person, which will then be subject to discussion. 

According to above mentioned, beneficiaries of this project include: i) senior officers with understandings of competition policy joining the workshop will directly gain knowledge from best practices in the appropriate implementation of investigative powers, ii) senior working-level officials with experience on competition cases will also be benefited from joining the workshop, learning from best practice will enhance understanding and effective implementation of investigative powers and will be a great resource to extend their knowledge to those who work in relevant agencies. 

This project may strengthen the network among participants for better identifying cartels and fighting against them. 

APEC and Non APEC economies may also benefit from shares knowledge and experience regarding the role of investigative powers in the repression of anticompetitive conducts - highlighting its effectiveness in the fight against cartels. 

Expert Speakers from competition authority in advanced APEC Economies and Non APEC will also be invited to exchange their experience. We are thinking to invite speakers from U.S.A, Mexico, Japan and European Commission for their experience in investigative powers. Since European Union is not APEC economy, we will coordinate on time with our Program Director. 

Finally, this project is aimed to the staff on competition agencies, ministries of economy and finance, regulatory offices, among other public bodies and the APEC economies.

Dissemination

All outputs of this project will be communicated to the EC as well as the SOM. The Project Overseer will also make a brief presentation on the project outcome during EC1 2017. In addition the project output will be posted at INDECOPI’s website. We are also considering implementing the results of the project in statement that may be endorse in the CPLG. 

Finally, the workshop materials such as power point presentations and the guideline produced will be provided in electronic format and made available on the Documents Database from APEC meeting and in our Web Site.

Gender

The seminar will be open to both men and women. This project will be implemented with an appropriate consideration on gender equity ensuring no discrimination against women. It is important to note that, during the planning phases, the project overseer has to coordinate with his supporting team, which is shaped by women team. 

In addition, gender balance will be taking into account as an important criterion for selecting both local officials to attend the Seminar. Therefore, we would try to ensure that 50% of each representative will be female. 

Women speakers will be encouraged. 

Finally, this project will benefit both men and women as stakeholders equally.

Work Plan

August – October 2016: Draft the Seminar Agenda and circulate to economies for comments.

October 2016: Incorporate the comments and finalize the agenda to reflect all interest by stakeholders.

November 2016: Invite and secure speakers for the seminar from international organizations, Competition Authorities and APEC economies.

November 2016: Promotion and dissemination of the seminar.

November 2016: Send questionnaires seeking information on how APEC member economies expect the result of the seminar.

December 2016: Invite participants from relevant APEC Ministers, agencies, academia and research institutes in APEC economies members.

January 2017: Confirmation of the event details.

February 2017: Ground arrangement by the organizing committee (logistic and documentation).

February 2017: Implementation of the 2 day seminar.

April – May 2017: Upon conclusion of the seminar, event organizers will work with co-sponsors, speakers and other participants to draft a report for the CPLG Group.

Risks

Activity

Output

Risk

Management of Risk

Invite/confirm potential speakers

Experts invited and confirmed

Unavailability of experts

Work closely with co-sponsors and stakeholders to identify several alternatives of experts.

Invite Participants

Number of participants

Dissemination not successful

Project overseer will strictly monitor and enforce data base (list of participants)

In order to support developing economies in case they cannot implement this type of program, we are going to send all the documentations resulting from the Seminar and support them by email for any misunderstanding.

It is important to mention that one purpose of this seminar is to show to all APEC economies that new investigative powers can be used to determine and find out anticompetitive behaviors. According to that, INDECOPI will share its experience acquired in last years and its effectiveness to protect competition.

Seminar

Seminar implemented

Participants/speakers do not show up or cancel at last minute (Low risk)

Project overseers will be in close contact with speakers and participants throughout the process to minimize any last minute cancelations. It is important to mention that this seminar is plan to be develop under SOM I, in order to assure more participation.

Disseminate results

Seminar into practice

Economies / Regulators will not have the resources to put the training into practice

All the information and lectures will be uploaded and disseminated with participants and regulators representatives. Also the P.O will help to conduct further questions in order to give support to economies who will implementing best practices.

Monitoring and Evaluation

·  Because this project is aimed most directly at the developing economies of APEC, it will be considered an indication of success if more than two-thirds of the eligible member jurisdictions participate.

·  Following the Workshop, and based on completed Workshop evaluation, a report on the outcome of program will be publicized during a CPLG meeting and uploaded to the APEC webpage.

·  Send questionnaires seeking information on how APEC member economies expect the result of the seminar in order to apply in the workshop. Response rate not less than 45%.

·  Document identifying best practices used by competition agencies in their fight against anti-competitive behavior.

·  Framework to improve the application of forensic tools as investigative powers in APEC Economies.

·  Evaluation forms will be distributed at the end of the workshop in order to assess its impact.

Linkages

This Project intends to complement the project developed by the USA “Promoting Competition International Best Practices to Implement ANSSR Goals”. In order to continue and complement the preceding project, this project will focus on the implementation of forensic tools, subject that will not be covered by the USA project and that is necessary to covered in order to get a complete vision of the importance of investigative powers. 

The reductions of cartel´s increase the benefits of a competitive economy to consumers and stimulate the incorporation of new technologies to the production processes. So there is a consumer a contemporary trend towards the enactment of laws that prevent the formation of such economic agreements.

Sustainability

This seminar will help to economies to get experience from other economies to solve and implement appropriate forensic tolls as investigative powers and learn about the treatment of this particular situation that have a positive effect around the world and the best practice to confronting anticompetitive conducts.

Furthermore, the officials could promote the applications of new investigative powers in their economies as an efficient way to fight against cartels and increase the strength of the competition agency.

We could create reports about its progress between beneficiaries. Also we can share decisions about some cases like examples of correct way to implement investigative powers.

After the seminar, this knowledge could be used in their respective economies, to improve the solutions to these behaviors. In that way, we could observe the evolution in the implementation of tools around the world and how these affect the market and the repression of anticompetitive conducts.

This seminar is addressed to create awareness in the beneficiaries and show the benefits of investigative methods and we consider that this project will continue to have impact after the APEC funding through the implementation of new and important tools. 

The first one is related to increase the expertise of the officers about conducting and implementing new investigative methods. The second one is related to expect increasing the number of tools used by the competition authorities. In particular, focusing to establish a commitment to promote and protect the competition by establishing general rules for the protection of information of enterprises by the competition agency using forensic software. In that context, the results of the seminar will be included in an statement that may be endorse by the CPLG. 

Finally, Peru, as the proposal economy will take action on the next steps, as this tool is consider important in every competition agency, the P.O will ask the CPLG Convenor to include in the CPLG work plan the improves that each economy member will develop during the next period as a way to demonstrate a join work.

To sum up, there are the next steps to keep this project sustainable:

1) Improve training for economies in the use of forensic tools.

2) Unify the criteria of competition agencies on the prevalence of protecting the competitive process to benefit consumers.

3) Safeguarding of information from companies as part of the transparent and proper work of the competition agencies.

4)  Improve the tools developed by competition agencies in their fight against anti-competitive behaviour.

5) Develop best practices and disseminate them into APEC economies.

Project Overseers

Mauricio Gonzales, Manager of the Technical Cooperation and the Institutional Relations of INDECOPI

Lily Escobar, Specialist of the Technical Cooperation and the Institutional Relations of INDECOPI

Arturo Chumbe, Executive of the Free Competition Commission

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
Attachments
Version: 7.0 
Created at 05/08/2016 14:06  by Lucy Phua 
Last modified at 11/04/2018 09:52  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
Content Type: Standard Proposal
Version:
Created at by
Last modified at by
Go Search