Competition Law at Laos

Laos' competition law framework has evolved significantly over the past two decades, transitioning from an initial decree to a comprehensive national law aligned with ASEAN standards.

📜 Historical Development

Decree No. 15/PMO (2004): Issued by the Prime Minister's Office, this decree laid the foundation for promoting fair trade competition in Laos. It prohibited monopolistic practices, unfair trade practices, and anti-competitive agreements, and established the Trade Competition Commission to oversee enforcement

Business Competition Law (2015): Passed by the National Assembly, this law replaced the 2004 decree, introducing more detailed provisions on anti-competitive agreements, abuse of market dominance, and mergers and acquisitions. It also established the Business Competition Control Commission (BCCC) as the primary enforcement body. 

⚖️ Key Provisions of the Business Competition Law (2015)

Anti-Competitive Agreements: Prohibits agreements that restrict competition, such as price-fixing, market allocation, and bid-rigging.

Abuse of Dominant Position: Outlaws practices that abuse a dominant market position to the detriment of competition, including predatory pricing and exclusive dealing.

Mergers and Acquisitions: Requires notification of mergers and acquisitions that may substantially lessen competition, with exemptions for small and medium-sized enterprises (SMEs) under certain conditions.

Exemptions: Allows for case-by-case exemptions if anti-competitive practices contribute to national socio-economic development or security. 

🏛️ Institutional Framework

Business Competition Control Commission (BCCC): Tasked with investigating and enforcing competition law violations.

Ministry of Industry and Commerce: Oversees the implementation of competition policy and coordinates with the BCCC

🌐 Regional Integration and Capacity Building

Laos' competition law aligns with the ASEAN Competition Action Plan (ACAP) 2016–2025, demonstrating its commitment to regional economic integration. The country has participated in various capacity-building initiatives, including workshops and training sessions organized by ASEAN and supported by international partners like Germany and Australia

In March 2021, the Lao Competition Commission organized a socialization event at the Faculty of Economics and Business Administration, National University of Laos, to raise awareness about competition law among students and academics. The event addressed topics such as bid-rigging, price-fixing, and cross-sectoral coordination with other laws like criminal and intellectual property rights. 

 

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