Myanmar’s Ministry of Commerce (“MOC”) issued the Competition Rules (Notification No. 50/ 2017) dated 9 October 2017 (“Rules”) pursuant to Article 56(a) of the Competition Law. After the National Assembly’s 90-day review period, the Rules took effect earlier this year.
While the Rules provide no material guidance on the interpretation and application of the substantive provisions of the Competition Law; they clarify aspects of the Competition Commission (“Commission”) and Commission Secretariat (“Secretariat”) as well as expanding on several procedural elements of the Competition Law.
The Rules provide that the Commission will be formed of at least 9 members proposed by the MOC including at least one representative from each of the MOC, the Attorney General’s Office and the Ministries of Home Affairs, Transport and Communications, and Industry, members with a background in each of economics and law as well as a representative from business.
Non-government Commissioners are to be retained and remunerated as full time Commissioners, but, while special meetings are contemplated, the Commission is only required to meet quarterly. Half the Commissioners are required to constitute a quorum and resolutions must be passed by at least half the members present at a meeting.
The Commission is to form Investigatory Committees to investigate violations which are to be chaired by a Commissioner and otherwise composed of members with relevant expertise and knowledge. An Investigatory Committee is provided various powers to conduct its investigation and the ability to form Working Groups to perform specific tasks in relation thereto.
The Secretariat is to be formed by the MOC to serve as the administrative arm of the Commission, Investigatory Committees and Working Groups and screen complaints among other functions.
Complaints are to be filed with the Commission or Secretariat and the Secretariat is tasked with screening the complaints and reporting to the Commission on their reliability within 7 days of receipt.
The Rules provide both the complainant and the subjects of an investigation with rights to provide evidence and participate in the investigation although the degree of such participation is not clear. Investigations may also incorporate experts with consent of the Commission. After conclusion of an investigation, the Investigatory Committee must report to the Commission on its findings and evidence obtained.
An infringement may be dealt with through administrative action or through judicial proceedings initiated by a complaint filed with the police.
- 100% for the first person to admit violations and fully cooperate prior to the investigation;
- 80% for the first person to admit violations prior to the investigation, but who does not fully cooperate;
- 50% for the second person to admit violations and cooperates prior to the investigation;
- 30% for each of the third to fifth person to cooperate prior to the investigation or for up to three people who cooperate during an investigation.
Ringleaders are ineligible for relief and evidence provided must be essential and unknown to the Investigatory Committee. Informants who provide false information or who provide information for consideration will be punished under the Penal Code.
DFDL Contact:
William D. Greenlee, Jr.
Partner, Managing Director, Myanmar
Head of China Desk
william.greenlee@dfdl.com
David Fruitman
Regional Competition Counsel
david.fruitman@dfdl.com
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
