The Legal and Institutional Framework of the Ethiopian Competition Law and Its Enforcement

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Date

2011-06

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Addis Ababa University

Abstract

Competition is the corn erstone of a free-market economy. Without competition a free-market economy ca lIDot yield the expected benefits and fmits to bring about sound economic development. However, competition requires the public control to protect it from being abused by private firms. This means the govenunent ha s to intervene in the market to control how businesses are transacting. But the mechanism of intervention matters. The government has to intervene in the market to control market imperfections, and to promote and maintain competitive markets through the a rm s of competition policy and competition law . This competition policy and law should also be well designed taking into account once country's specifi c development goals to ha ve effective competition regime. As such, it also require s effective enforcement in stitutions to achieve the desired goals and benefits. However, there are man y challenges to adopt effecti ve competition policy and law and to establish effective enforcement institutions. On top of that, there are so many constraints to implement competition policy and law effecti vely. This, in effect, makes the public to mi ss benefit s of competition. In order to maintain and promote competition and competitive markets, Ethiopia has promulgated her recent competition law named "Trade Practice and Consumers' Protection Proclamation No.685/2010". Therefore, if Ethiopia impl ement s thi s Proclamati on effectively the public will secure benefits of competition and fruit s of a free-market economy. Of course there are some issues related to the legal and the instituti onal framework of the Ethiopian co mpetition la w which might affect th e effective enforcement the law that those require the amendment of the law .

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Keywords

Competition Law and Its Enforcement

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