CARIBBEAN COMMUNITY SECRETARIAT

The CARICOM Competition Policy has as its objective to promote and maintain competition and enhance economic efficiency in production, trade and commerce. To ensure that action by enterprises does not reduce the benefits to be derived from the CSME, the CARICOM Competition Policy prohibits anti-competitive business conduct which prevents, restricts or distorts competition. This policy also promotes and protects consumer welfare. Competition Law discourages conduct which undermines competition and is therefore one of the key measures needed to support the proper functioning of markets. Two pillars of competition law are prohibitions against:

• Anti-Competitive Agreement:  These are agreements between two or more competitors which have the
  intention or the effect of limiting competition amongst themselves in order
  to gain higher profits.
• Abuse of a Dominant Market Position: A firm is dominant in a market when its power far exceeds that of its rivals,
  and it can set prices without taking into account how competitors would
  react. In some jurisdictions, for instance, a firm is considered dominant if
  it possesses at least 40 percent share of the market for a particular product;
  Public-owned monopolies are also subject to the Community competition
  rules, according to Article 31 of the Revised Treaty.
• Anti-Competitive Conduct: The following anti-competitive conducts are prohibited under Chapter 8 of the
  Revised Treaty:
•  Fixing of purchase or selling prices, directly or indirectly
• Restricting competition by arranging not to compete against each other
  in markets, or to restrict supply of sources.-Limiting or controlling production, markets, investment or technical
  development.
• Conspiring to affect tenders submitted in response to a request for a bid
  (Bid rigging).
• Treating parties engaged in similar commercial transactions unequally,
  so as to give competitive advantage to one party over another.
• Tying to a sale or contract additional obligations that are not connected
  to the substantive transaction.
•  Refusing to give competitors access to infrastructure or networks where
  such access is essential to the provision of a service.
• Directly or indirectly imposing unfair purchase or selling prices or other
  restrictive practices.
• Engaging in any business conduct that results in the exploitation of its
  customers or suppliers. This provision affords a national Competition
  Authority the ability to discipline firms that engage in such practices.