COMPANIES that indulge in anti-competitive behaviour could be named and shamed under a competition law. Proposals will go to the States at the end of the month for measures that include appointing a director-general of Competition, who will have the power to investigate and fine companies found to be in breach of the law.

‘The Commerce and Employment Department is of the view that there is a clear justification for legislation to address arrangements that constitute anti-competitive behaviour,’ said minister Stuart Falla.

The department will ask the States to approve enabling legislation to control the abuse of a dominant market position and anti-competitive practices.

These could include businesses charging unjustifiably high prices enabling them to enjoy abnormally high profits or, alternatively, charging very low prices which would force competitors out of the market.

While the director-general would be responsible for dealing with companies, only the States would dictate what abuses of market position should be investigated.

The director-general would be able to compel businesses to provide information relevant to an investigation and have specific powers to enter premises with a warrant if necessary.

‘In the department’s view, the legislation should contain specific authority for the director-general of Competition to publish the results of investigations and name the parties involved,’ said Deputy Falla.

‘This should not only provide a further deterrent in circumstances where infringements of the provisions of the law are deliberate, but also provide a safeguard in circumstances where, following an investigation, no wrongdoing has been found.’

The director-general of Competition’s powers would also include being able to make recommendations regarding a company’s future conduct, issuing directions to stop anti-competitive practices and in cases where the breach was reckless or negligent, the power to impose a financial penalty of 10% of turnover during the period of the breach.

A further investigation will be carried out into the energy market to decide whether it should come under the remit of the proposed law.