Competition law in ASEAN: The future of competition authority in ASEAN Economic Community

Abstract

Purpose of Study: ASEAN countries have entered into the free-market era, based on AEC Agreement in 2015. This ASEAN free market system will certainly stimulate business competition among the members. Therefore, ASEAN needs competition law and competition authority to foster healthy competition among businesses in the ASEAN area. This research focuses on; first, that ASEAN members need to develop and harmonize the Competition Law existing in each country; second, ASEAN members need to set up the Competition Authority to enforce the implementation of the free market system. Methodology: This paper uses normative legal research, and proposes two main arguments. The first, to support a healthy business competition in the ASEAN single market, it is necessary for all ASEAN member states to have Competition law, and the competition law in each ASEAN country can be made by referring to the guidelines formulated at the level of ASEAN. The second, the Competition Authority in ASEAN Economic Community is an independent institution established by each member states authoritative to conduct an investigation, prosecution, and adjudication, as well as to cooperate with the Competition Authority in other member countries. Results: ASEAN is a very potential market. The transactions between ASEAN countries or from other countries show an extraordinary improvement. With the opening of the ASEAN single market since 2015, the business competition will be tighter and of course, the market is expected to be in good health and not controlled by certain business groups. Implications/Applications: To support healthy business competition in the ASEAN single market, it is urgent that all countries have Competition law. The regulation is made in each country by referring to the guidelines that have been formulated at the level of ASEAN to create harmonization of law.