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PREMIER UNIVERSITY
Department of Economics

Assignment on
Anti-Trust Law in Bangladesh

Course Title : Economics of Industrial Organization

Couse Code : ECO 411

Submitted By:
Submitted To:
Muhammad Shoaibur Rahman
Badrul Hasan Awal ID: 1903010900578
Lecturer Session: Spring Batch: 30
2023
Premier University
Department of Economics Premier University
Department of Economics
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Introduction:
In today's globalized world, businesses are more interconnected than ever before. As a result,
it is important for businesses and consumers alike to understand the concept of anti-trust and
its relevance in Bangladesh.

Anti-trust laws are designed to promote fair competition and prevent monopolies from forming.
By preventing monopolies, these laws help to ensure that consumers have access to a variety
of goods and services at reasonable prices. Additionally, anti-trust laws can help to promote
innovation and encourage businesses to be more efficient.

What is Anti-Trust?

Anti-trust laws are designed to promote fair competition and prevent monopolies or other anti-
competitive practices.

In Bangladesh, these laws are particularly important because they help ensure that businesses
of all sizes have a level playing field and consumers have access to a variety of choices.

The History of Anti-Trust in Bangladesh:

The history of anti-trust laws in Bangladesh can be traced back to the early 20th century when
the British colonial government enacted the Indian Companies Act in 1913. This act was aimed
at regulating the formation and management of companies in India, which included what is
now Bangladesh. However, it was not until the introduction of the Competition Act in 2012
that anti-trust laws were specifically targeted towards preventing monopolies and promoting
competition in the market.
Since then, there have been several significant court cases that have shaped the enforcement of
anti-trust laws in Bangladesh. One such case was the Bangladesh Telecommunication
Regulatory Commission (BTRC) vs. Grameenphone case in 2018, which resulted in a fine of
BDT 2.5 billion ($29.6 million) for Grameenphone for abusing its dominant market position.
This case was seen as a landmark decision in the enforcement of anti-trust laws in Bangladesh
and sent a strong message to other companies about the consequences of anti-competitive
behavior.
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The Benefits of Anti-Trust Laws:

Anti-trust laws in Bangladesh are designed to promote fair competition and prevent
monopolies, which ultimately benefits both businesses and consumers.

For businesses, anti-trust laws create a level playing field, allowing smaller companies to
compete with larger ones. This encourages innovation, as companies must constantly strive to
improve their products and services to stay ahead. For consumers, anti-trust laws help to ensure
that they have access to a variety of choices at competitive prices.

The Challenges of Enforcing Anti-Trust Laws:

Enforcing anti-trust laws in Bangladesh can be a challenging task due to various cultural and
political barriers. One of the biggest challenges is the lack of awareness among businesses and
consumers regarding the importance of anti-trust laws. Many people in Bangladesh are not
familiar with the concept of anti-trust, which makes it difficult for authorities to enforce these
laws effectively.

Another challenge is the influence of powerful business groups and politicians who may try to
undermine the enforcement of anti-trust laws. These groups often have significant political and
economic power, which can make it difficult for regulators to take action against them.
Additionally, corruption and a lack of resources within regulatory agencies can also hinder the
effective enforcement of anti-trust laws.

Anti-Trust Violations in Bangladesh:

One example of an anti-trust violation in Bangladesh occurred in the telecommunications

industry. In 2019, the Bangladesh Telecommunication Regulatory Commission (BTRC) fined
four mobile phone operators a total of Tk 315.97 crore (approximately $37 million USD) for
violating competition rules. The BTRC found that the companies had formed a cartel to fix
prices and allocate customers, which resulted in higher prices for consumers.
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Another recent case involved the pharmaceutical industry. In 2020, the Bangladesh
Competition Commission (BCC) fined five pharmaceutical companies a total of Tk 25.70 crore
(approximately $3 million USD) for colluding to fix drug prices. The companies were found
to have shared commercially sensitive information and coordinated their pricing strategies,
which led to higher prices for consumers.

The Role of the Bangladesh Competition Commission:

The Bangladesh Competition Commission (BCC) is an independent regulatory body that was
established in 2019 to enforce anti-trust laws and promote fair competition in the market. The
BCC has the power to investigate and prosecute anti-competitive behavior, as well as review
mergers and acquisitions to ensure they do not harm competition.

In recent years, the BCC has taken several initiatives to strengthen its role in enforcing anti-
trust laws. For example, it has launched a mobile app to make it easier for consumers to report
anti-competitive behavior and has signed agreements with other regulatory bodies to improve
coordination and information sharing. The BCC has also conducted awareness campaigns to
educate businesses and consumers about the importance of fair competition.

Best Practices for Complying with Anti-Trust Laws:

One of the key best practices for complying with anti-trust laws in Bangladesh is to ensure that
your company's pricing policies are fair and transparent. This means avoiding any collusion or
price-fixing agreements with competitors, as well as avoiding predatory pricing tactics that
could harm smaller businesses.

Another important best practice is to maintain accurate records of all business transactions,
including sales, purchases, and contracts. This can help you demonstrate compliance with anti-
trust laws if you are ever subject to an investigation or audit.
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The Future of Anti-Trust in Bangladesh:

As Bangladesh continues to develop and modernize its economy, the role of anti-trust laws will
become increasingly important. With more companies entering the market and competing for
consumers, it is essential that there are regulations in place to prevent monopolies and ensure
fair competition.

One potential development in the future of anti-trust laws in Bangladesh is the expansion of
the Bangladesh Competition Commission's powers. Currently, the commission has limited
authority to investigate and punish anti-competitive behavior. However, there have been calls
for the government to give the commission more teeth, so that it can better protect consumers
and businesses from unfair practices.

Conclusion:

In conclusion, anti-trust laws play a crucial role in promoting fair competition and protecting
consumers in Bangladesh. By preventing monopolies and price-fixing, these laws ensure that
businesses operate on a level playing field, which ultimately benefits everyone.

We have seen how anti-trust laws have evolved in Bangladesh over time, with the
establishment of the Bangladesh Competition Commission and the enactment of various pieces
of legislation. However, there are still challenges to enforcing these laws, particularly when it
comes to cultural and political barriers.

Reference:

• Real Implication of Competition Law in Bangladesh. (n.d.). Retrieved from fmassociatesbd:

https://www.fmassociatesbd.com/insights/real-implication-of-competition-law-in-bangladesh

• United Nations Conference. (n.d.). Retrieved from unctad:

https://unctad.org/system/files/official-document/ciclpd64_
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