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p. 49 of 62 BACK | NEXT Purpose and Structure of the Toolkit Overview of Practices Controlled by Competition Law Countries with Competition Law Systems Benefits of Competition Policy Practices Controlled by Competition Law Key Concepts and Tools Competition, Privatization, and Regulation Emerging Economies Enforcement Mechanisms Role of the Legislature, the Government and Ministers Independent Competition Authorities Accountable Competition Authorities Design of the Competition Authority Procedures of the Competition Authority Transparent Decision-Making Powers of the Competition Authority Sanctions Leniency Program Competition Law Compliance Programs Administrative Guidance Role of the Courts Miscellaneous Points ADB Resources and Projects Other Resources Glossary and List of Abbreviations

Competition Law Toolkit : Enforcement Mechanisms

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D. Design of the Competition Authority

There are various ways in which the competition authority may be designed. One possibility is to vest the powers of the authority in a single individual: for many years, the Office of Fair Trading in the UK was presided over by the Director General of Fair Trading and the formal powers in the various pieces of legislation for which he was responsible were vested in him. Similar powers were given to the sectoral regulators responsible for gas, water, electricity, and railways. A similar model can be found in the telecommunications sector in Hong Kong, where the powers of the Telecommunications Authority are actually exercised by the Director General.

Given the complexity of competition law and the extent of the powers that may be available to the competition authority, it has become generally accepted that it is not appropriate that they should be exercised by just one individual. Therefore, a different model is to establish a Commission consisting of several individuals, or a corporate body with a board of directors. In the UK, the Office of Fair Trading is a corporate body with a part-time chairman, a full-time chief executive, and five non-executive board directors. The sectoral regulators have the same model: see the position of the Office of Communications. On the other hand, there is also a Competition Commission in the UK, which has the final power of decision-making in relation to certain matters, particularly in relation to mergers. It is a commission consisting of a mix of full- and part-time members, a small number of which sit in panels to decide particular cases.

In the US, the Federal Trade Commission consists of five commissioners, each serving a seven-year term, who collegiately decide cases. On the other hand, the Department of Justice has an Antitrust Division, headed by an Assistant Attorney General, and the Antitrust Division prosecutes cases before the courts in the US. In the European Union, there is a College of Commissioners consisting of 25 individuals appointed from each of the member states, and they are collegiately responsible for decisions.

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