Nationalist MP Franco Debono told Parliament there had been significant progress since the coming into effect of the original Competition Act even in relation to the widening of the application of the law to public entities and enterprises.
Speaking during the debate on the Malta Competition and Consumers Affairs Authority Bill, Dr Debono said developments had also taken place in specific sectors indicating that for example the communications sector had developed to the extent of being regulated by an authority as well as the office for fair competition.
The Bill was now proposing that a specific directorate would be responsible for this sector and other identified sectors.
With the introduction of the Bill no form of price control would be retained but the consumer would still be protected and the authority would still be entitled to investigate increase in prices within the scenario of a dominant position.
The Bill gave the director general the competence to take decisions on individual cases and to impose administrative penalties. The enterprise faced with this situation however would have access to the tribunal for appeal.
The Fair Trade Commission had helped to send out the right message against cartels. The Bill was now proposing the Consumer Tribunal, which would also hear appeals by the director-general of the Consumer Affairs Division for the greater all-round benefit of consumers.
The three-member tribunal would be presided over by a judge. It could fine a company found guilty of unfair competition 10 per cent of its annual turnover. The previous deterrent had not been enough, but this was now being addressed.
The Bill afforded greater possibilities of instituting legal action for damages. The possibility of this already existed, but had never been used.
Another clause gave the DG of the Consumer Affairs Division the facility to address any cases of breach of law that he discovered. The aim was to expedite redress, with the offending enterprise being made to commit to solving the problem of unfair competition it would have created. Also expediting redress would be a new procedure to reduce a company’s fine by 10 per cent if it admitted having taken part in a cartel.
The huge steps achieved by the Bill through its various amendments should be appreciated. These amendments would contribute significantly to the authority’s aims to instil the best possible deal for consumers.Concluding, Dr Debono said he believed the Bill’s effects would continue to enhance the business environment.
Francis Zammit Dimech (PN) said the final test of the Bill was in its implementation by the persons responsible for the different entities within the authority.
Consumer protection should, however, be a priority for businessmen too. The business sector had to adjust its practices not only to reflect the impact resulting from greater competition and global-isation but also consumer rights.
The main functions of the authority included the strengthening of the consumer protection policy; promoting standards and technical regulations. The Authority itself consolidated the current structures but with a better synergy among the four different entities.
The Bill was a step in the right direction if it was implemented well by the persons responsible for the different entities, Dr Zammit Dimech said.