Editorial | Educate trade bodies on meaning of ‘fair’
- Competition is the lifeblood of all free economies but sometimes, in an effort to set industry standards, its true meaning is forgotten
Fair competition is more than just a slogan. Fundamental to development at the individual and societal levels, it enables a level playing field for every person and entity to pursue and progress for the wider public good. In reality, this is not always the case, though. The existence of entrenched interests and malpractices means some businesses and individuals continue to suffer.
The Competition Commission, therefore, is to be commended for tackling some long existing irregularities in relation to membership admission criteria and procedures of trade groups, and professional and sports bodies.
The watchdog said during the course of an investigation that it had encountered situations that raised concerns under the antitrust law.
For example, some industries make membership in an association an essential precondition for entering the market. But the admission criteria and procedure can be so restrictive that it may be harmful to aspirants. Exclusion may also deprive one of accreditation, government subsidies and advantages that are given only to members. The power to recommend fee scales by trade bodies may also harm competition, the commission says.
Rules and practices should be transparent, proportionate, non-discriminatory and objectively based. One advice by the watchdog is that professional bodies accredited by the government to oversee a register for qualified practitioners should refrain from telling clients to only work with their registered members.
