BizCLIR

Competition Law, known commonly as “Anti-Monopoly Law,” is the body of rules designed to promote business competition by preventing domination of any one market by any one enterprise. Although their aim is to promote competition, and thus “consumer welfare,” the laws are generally prohibitive and regulatory in nature. These laws don’t give benefit or license to an enterprise wanting to compete; they enable competition by preventing those who already have a dominant place in the market from crowding the smaller guy out. Their ultimate aim is to promote consumer and national welfare by protecting the market forces that drive quality, fair pricing and the efficient use of resources in an economy.

Afghanistan does not currently have many of the developed markets or market players that might give rise to the need for a Competition Law. Complaints of anti-competitive behavior by rival enterprises are largely anecdotal and are not widespread. A macro view of the economic landscape shows Afghanistan importing roughly eight times as much as it exports and only very slowly building the beginnings of domestic production capacity. There are a number of unique Social Dynamics that are constraining business competition and work in these areas could ultimately help build a vibrant domestic economy that might one day benefit from a body of Competition Law.