Hopes that the competition watchdog was coming out of limbo following a three-year hiatus were dashed after it transpired that law changes presented in 2018 are being “reviewed” in the wake of a recent judgment.
Consequently, the Competition Office will remain toothless as it can neither impose fines nor lead its own investigations to determine if a breach was committed or not.
This development came to light through a parliamentary question tabled by Opposition MP Chris Said who asked Justice Minister Owen Bonnici whether the saga would end anytime soon. The minister replied that the Bill comprising the necessary changes to the law would be published sometime in 2019.
The issue revolves around a landmark May 2016 Court of Appeal judgment, which found that certain provisions of the Competition Act were unconstitutional.
The case had been instituted by the Federation of Estate Agents, which had felt aggrieved by the decision of the Director for Competition to proceed against it over alleged breaches of the law. It argued that only a proper court could decide such matters given that, in case of ‘guilt’, it could be fined up to €1.25 million.
Following the judgment, the Competition Office announced it would be refraining from imposing any fines until the situation was remedied.
The issue revolves around a landmark 2016 judgment
In January 2017, the government opted to address the situation through constitutional amendments but the changes were shot down by the Opposition amid fears these would dilute the right of a fair hearing.
The Justice Ministry had a bite at the cherry last August when it published a Bill for public consultation. The main thrust of the proposal was to abolish the Competition and Consumer Appeals Tribunal so decisions by the regulator could be challenged before the Civil Court (commercial section).
The proposed amendments had a positive feedback but the government faced a fresh set-back last November, this time following a legal challenge filed by San Lucian Oil Company Limited, a member of Falzon Group Holding.
The Falzon Group had taken the Competition Office to court following a ruling in January 2017, whereby it was found guilty by the Director for Competition of colluding with the owner of M&N Camilleri fuel station of Rabat to fix the price of diesel.
Though no fine had been imposed in line with the 2016 judgment, the oil company contested the decision on grounds that such proceedings should have been heard before a court because competition law breaches were of criminal nature.
The court upheld the oil company’s arguments, saying the Competition Office was not empowered to hold its own proceedings to determine if a breach had been committed or not.
Following this decision, Times of Malta had enquired with the Justice Ministry on the way forward but no reply was ever received. The issue surfaced again in Parliament on Wednesday.
In his reply to Dr Said’s parliamentary question, Dr Bonnici said that, in light of the recent judgment, the amendments proposed last year were being “revised”.
In another reply, he pointed out that the new Bill would be published “this year”.