Challenges and Policy Recommendations for Competition in French Polynesia
Addressing challenges such as lack of competitive pressure, exclusivities, and supply model, as well as pressures for immediate results and absence of experts, this report offers policy recommendations including fiscal policy adjustments, tax incentives, and aggressive enforcement to promote healthy competition in the market.
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Competition in French Polynesia Alejandro Ibarra, February 2024
Competition Competition Conditions Conditions on on FP FP Need to create Competition, not only to protect it. Fiscal policy Tax incentives Trade Policy Decrease barriers Competition policy and enforcement Aggressive enforcement (agreements and Unilateral conduct) Merger control Advocacy Market characteristics Small Remote Concentrate Highly dependent on imports
APC APC Challenges Challenges Those from the youth of the Authority Pressure for immediate results Recruiting Lack of Precedent and Standards Absence of experts and competition culture
APC APC Challenges Challenges Derived form the size and location of the Market Lack of competitive pressure, exclusivities, and supply Exclusivities, and supply model model Creation of proper standards Oligopolist coordination and Social Ties
APC APC Challenges Challenges Those coming from the legal design of the system Structural Independence Sustentive Independence * Conditions for the well being of the authority in the long run
Sustentive Sustentive Independence Independence Assesses whether the Government can trump the decisions of the Competition Agency The president can overturn merger control on the bases of on the bases of public interest: 1 the creation or maintenance of jobs, 2 Industrial development, 3 The competitiveness of the companies in regarding markets The executive can exempt from the application of enforcement enacting regulation. Broad power question international
Structural Structural Independence Independence Assesses whether the design of the authority allows the government control over the Competition Agency Appointment Criteria: Compensation: 1. For the chair and board members. 2. For the General Rapporteur. 1. Chairperson 2. General Rapporteur
Structural Structural Independence Independence Assesses whether the design of the authority allows the government control over the Competition Agency Appointment Criteria: Compensation: 1. For the chair and board members. 2. For the General Rapporteur. 1. Chairperson 2. General Rapporteur
Policy Policy Recommendations Recommendations Aggressive policy advocacy o Improve Competition Culture o Contribute to a decrease in regulatory and legal barriers o Help the government to achieve better policy results Lenient Merger Review o Consolidation of Scale Economies Aggressive Policy enforcement o Deterrent effect
APCs APC s Good Good Path Path Solid Advocacy activity o Market Studies o Opinions on regulation o International Visibility Solid technical decisions o Legal o Economic
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