Controlling Anticompetitive Acts of Government in Transport Sector in Addis Ababa

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Competition is promoted for efficient allocation of economic resources and consumer welfare. Anti-competitive behavior however is considered to be vice to the market competition resulting in misallocation of resources and manipulation of consumers. So it was believed that effective competition regime is needed to curtail Anti-competitive behavior in the market. Conventionally, competition regime is concerned with private acts which can distort competition in the market.1 Developments in the competition/antitrust regime, however has witnessed that state restraints can result in promoting anti-competitive behaviors of market actors. The state restraints are usually result from unnecessary, anticompetitive statutes, ordinances, and regulations imposed by state and local governments, including local regulatory authorities and considered to be one of major sources of economic inefficiencies.2 This is the focus of this paper. The trade competition and consumer protection proclamation in this regard lacks particularity. As result of this, the Transport Authority of Addis Ababa enacted different directives which have effect of restricting competition. I suggest amendment of the proclamation to incorporate rules that maintain cooperative relationship between the regulatory bodies and competition authority and that the law must require regulators to notify and seek mandatory advice from competition authority in a situation where it wants to take measures that affect economic activities in the market for which advice must be binding except the regulator justify its rejection of advice made by competition authority. Moreover, I suggested the competition authority to commit resources including human power to play its role of competition advocacy. In this regard the amendment aforementioned must come up with guidelines as to the scope of this role of the authority.



Anticompetitive Acts,Transport Sector