Competition Advocacy Contest 2024

Six winning stories and seven stories worthy of honorable mention were selected among 48 entries submitted by both government authorities and non-governmental organizations from around the world, along the following themes:

• Theme 1 – Fostering job opportunities and firm growth through competition advocacy
• Theme 2 - Competition advocacy to leverage new technologies while limiting the risks for markets
• Theme 3 - Embedding competition in industrial policies through advocacy
• Theme 4 - Raising awareness on competition by communicating on impact and results

Panellists of the ICN-WBG 2023 Competition Advocacy Contest:

• Eleanor M. Fox, Walter J. Derenberg Professor of Trade Regulation, New York University School of Law
• Mariana Tavares de Araujo, Senior Partner, Levy & Salomão Advogados
• Martha Martinez Licetti, Practice Manager; Markets, Competition and Technology Global Unit; Finance, Competitiveness and Innovation Global Practice, the World Bank
• Graciela Miralles Murciego, Senior Economist; Markets, Competition and Technology Global Unit; Finance, Competitiveness and Innovation Global Practice, the World Bank
   

Theme 1 - Fostering job opportunities and firm growth through competition advocacy

Competition policy is a key driver for job creation and firm growth, particularly for SMEs (OECD, 2015; UNCTAD 2022). Effective competition advocacy not only supports economic growth and government resilience but also paves the way for more and better jobs and SME development. Competition advocacy initiatives submitted under this topic enabled young, innovative entrepreneurs to compete with incumbents and benefit from financial inclusion, which is critical for women and youth. Initiatives also liberalized labor markets by addressing non-compete clauses/non-poaching agreements.

Winner

El Salvador

In El Salvador, micro and small enterprises (MSEs) account for over 98% of businesses and are mostly women-led, generating income and employment and significantly contributing to GDP. In this context, the Competition Superintendence (SC) of El Salvador implemented a multi-year advocacy strategy aimed at promoting a pro-competition culture to address the obstacles faced by MSEs. The strategy involved studies identifying barriers for MSE participation in public procurement and access to financial services, awareness campaigns, and collaboration with other agencies like the MSMEs authority. As a result, the SC supported initiatives to improve MSEs’ access to credit and public procurement, and to incorporate MSE considerations into competition compliance guidelines and procurement procedures.

Honorable Mentions

Portugal

The Autoridade da Concorrência (AdC) adopted a Best Practices Guide to Prevent Anti-Competitive Agreements in Labour Markets following a public consultation of more than 30 stakeholders including government ministries, trade unions, business associations, and recruitment agencies. The Best Practices Guide aimed at raising awareness on the negative impacts on competition, workers, and consumers of agreements related to hiring practices (no-poach agreements) and wage-fixing. The Guide advised companies to eliminate these practices and comply with competition law, emphasizing that anyone could submit complaints related to these agreements. This initiative has led to further investigations, leniency requests, and complaints, resulting in sanctioning decisions and fines.

USA

In the US, an estimated 30 million workers are subject to noncompete clauses. The US Federal Trade Commission (FTC) banned noncompete clauses nationwide to promote competition and protect workers’ freedom to change jobs while fostering innovation and boosting new business formation. The FTC received overwhelming support for the proposed ban on noncompete clauses, with over 25,000 comments in favor during the public comment period. Under the new rule, existing noncompete clauses for most workers will no longer be enforceable, except for senior executives. The rule is expected to generate over 8,500 new businesses annually, raise worker wages, lower healthcare costs by up to $194 billion over the next decade, and drive innovation with an estimated increase of 17,000 to 29,000 patents per year for the next 10 years.

Theme 2 – Competition advocacy to leverage new technologies while limiting the risks for markets

New technologies offer great opportunities for growth and innovation from the creation of new markets and products to revolutionizing traditional industries, even impacting the way competition authorities conduct their investigations and advocacy work. By fostering an environment that encourages the use of new tools and technologies while tackling their risks, competition advocacy can propel markets forward. Initiatives under this theme addressed specific challenges in digital markets from eliminating regulatory barriers in transportation, finance, broadcasting and online advertising to better understanding generative AI and using machine learning in cartel detection.  

Winner

Paraguay

The Comision Nacional de Competencia of Paraguay (CONACOM) promoted competition in digital services within regulated markets, particularly in the transport and financial sectors. In transport, CONACOM initiatives enabled digital platforms like Uber and Bolt to compete with traditional taxis by supporting the elimination of stricter regulatory requirements for operators with new business models. CONACOM's efforts led to municipalities rejecting ordinances that limited entry of ride hailing applications and prompted the Congress to reconsider a draft law disadvantaging digital providers. Similarly, CONACOM intervened to prevent legislation that could hinder competition in electronic transactions, thus limiting financial inclusion. In line with the Central Bank views, the Commission advocated for the elimination of overly restrictive identification measures and encouraged proportional risk-based regulation.

Honorable Mentions

Portugal

The Autoridade da Concorrência (AdC) published an Issues Paper on the competition conditions in the development and deployment of Generative Artificial Intelligence (AI). The paper recognized that Generative AI could contribute up to 7% of the world's GDP in ten years and be present across services from research and education to healthcare and entertainment. The AdC emphasized three conditions to foster competition in AI namely access to data, access to cloud computing or specialized hardware and access to foundational generative AI models. Key competition risks identified included inherent trends towards concentration and exclusionary behaviour. The initiative enhanced the understanding of the AdC on Generative AI and built internal capacity for addressing potential concerns.

Spain

Since 2015, the Comisión Nacional de los Mercados y la Competencia (CNMC) has been at the frontier of bid rigging detection. The CNMC established a public procurement database aggregating essential information sourced from multiple public procurement channels and created an Economic Intelligence Unit (EIU) that developed cutting edge analytical tools, from task automation algorithms to natural language processing. Leveraging these innovative techniques, the CNMC has published reports on key procurement markets. These efforts underscore CNMC's dedication to leveraging new technologies to fight economic cartels and safeguard market competition.

Theme 3 - Embedding competition in industrial policies through advocacy

Governments across the world are increasingly reconsidering the role of industrial policies as a mechanism to strategically promote key economic activities, including in the context of green transition, yet evidence shows that industrial policies without a competition angle might miss the mark. Initiatives under this theme confirmed the importance of early engagement in the design of industrial policies. Initiatives embedded competition principles through clear methodologies and involvement of affected market operators. Initiatives also aimed to better understand their impact ex post to leverage lessons learnt for future design in key markets from telecommunications and railways to food and construction.

Winners

Spain

Ex post evaluation of industrial policies is key to refine future policies, guarding against competition distortions and improving effectiveness of public spending. In this context, the Comisión Nacional de los Mercados y la Competencia (CNMC) conducted an evaluation of the effectiveness of public spending on a broadband deployment plan targeting underserved areas. The CNMC analysis found a significant increase in fiber optic usage and a decrease in market concentration, particularly in municipalities with populations under 10,000. Recommendations were provided to enhance the efficiency of public intervention, emphasizing coordination between national and regional administrations and the promotion of public-private collaboration. These insights can inform future broadband infrastructure deployment strategies and provide a template for systematic evaluation of industrial policy.

Türkiye

Following a devastating earthquake in February 2023 that affected 14 million people and caused 104 billion worth of damage, the Turkish Competition Authority, Rekabet Kurumu (RK) engaged with local businesses to better understand competition problems that could delay recovery efforts. These exchanges prompted the launch of an inquiry targeting crucial sectors for economic recovery namely construction and healthcare. Key stakeholders in this process included regional development agencies and chambers of commerce and industry. The RK established direct communication channels with local chambers to provide guidance and prevent anti-competitive practices. Further results include the opening of an investigation into price-fixing among cement producers. This initiative, which built on similar experience of peer agencies (including the Japan Fair Trade Commission), demonstrates the importance of ensuring competition during reconstruction.

Honorable Mention

New Zealand

The New Zealand Commerce Commission developed the Competition Assessment Guidelines to help policy-makers incorporate competition principles into policy. The authority collaborated with its monitoring government agency to develop and publish the guidelines, recognizing the far-reaching implications of overlooking competition in policy decisions, especially amidst crises like COVID-19. The guidelines serve as a user-friendly resource for public officials, offering practical advice on considering competition in initiatives that shape markets. Through targeted training sessions and engagement events, the tools have reached over 400 public officials.

Theme 4 - Raising awareness on competition by communicating on impact and results

Communication is a key component of effective competition advocacy, including for demonstration effects, sustainability of reforms and peer to peer learning. More than 20 submissions under this theme showed a myriad of innovative techniques to effectively raise awareness of the benefits of competition and develop a competition culture. Initiatives were diverse: from engaging with the youth and promoting immersive learning experiences to carrying ex post evaluations to quantify the impact of pro-competition interventions and promoting strategic alliances across countries and regions.

Winners

Hong Kong

The Hong Kong Competition Commission (HKCC) launched an innovative TV docudrama series to raise awareness of the importance of competition law and policy across the business community. By depicting real-life competition law cases in an engaging format, the series, accompanied by a comprehensive publicity campaign, garnered over 3.47 million online views and contributed to a 30% year-on-year increase in complaints and inquiries received by the HKCC. The HKCC launched the series following 3 major cartel cases affecting public housing which prompted revisions to government policies, enhancing protections for lower-income residents. The initiatives also heightened demand from government departments for the HKCC's competition advice on public policies and programs, reflecting its growing influence and impact beyond enforcement.

Mexico

Comisión Federal de Competencia Económica (COFECE) marked the 10th anniversary of its establishment as an autonomous institution and the 30th anniversary of the Competition Law. To celebrate, COFECE published a commemorative book, Competition Policy: Past, Present, and Future. COFECE gathered opinions, analysis, and reflections from key stakeholders, including academic specialists, public officials, former members of the agency's governing board, and international peers. The book was presented at two events, including an international fair and a panel hosted by the agency, and is currently distributed in government institutions and public universities, with free access available for all interested parties.

Honorable Mentions

Egypt

The Egyptian Competition Authority (ECA) launched the Arab Competition Network contest for economics and law students. The contest was designed to raise awareness on competition-related matters among college students of law and economics. Students joined from twenty-seven universities across members states of the Arab Competition Network, where the program engaged 42 students in an immersive learning experience. Through interactive sessions, trainees were organized into teams to analyse hypothetical scenarios related to competition law. Early engagement with young talent fosters a competition culture and creates future advocates for pro-competition policies. Two students who participated in the Arab Competition Authorities Simulation joined their national competition authorities.

Poland

The Urząd Ochrony Konkurencji I Konsumentów (UOKiK) started a Summer Camp for students. Recognizing the importance of having skilled professionals to enforce competition regulations effectively, the initiative sought to attract students from universities across the country to participate in workshops on competition law and the agency's activities. By engaging directly with 50 universities and leveraging online platforms and influencers, the project aimed at promoting the institution as an attractive employer and raise awareness on the importance of competition law. The participants are expected to serve as future ambassadors, advocating for a culture of competition, wherever they may go.

As defined by the ICN, competition advocacy refers to activities that promote a competitive environment through non-enforcement mechanisms, such as building relationships with government entities, increasing public awareness of competition’s benefits and identifying and removing anticompetitive policies and regulations.

We are looking for success stories from competition agencies, other public bodies or civil society that demonstrate the tangible results of competition advocacy under four themes:

Theme 1 - Fostering job opportunities and firm growth through competition advocacy:
Competition policy is a key driver for job creation and firm growth, particularly for SMEs (OECD, 2015; UNCTAD 2022). More than 30 percent of workers are employed in concentrated markets that may increase competition risks (Araki et al. 2023 covering a sample of 14 countries). SMEs, which account for 90 percent of businesses and more than 50 percent of employment worldwide, recognize the critical role of competition in promoting innovation, better prices and increased choice (between 80-90 percent of respondents in EU study of SMEs). Evidence confirms that major product market deregulation reforms increased real value added and employment in targeted industries by approximately 10 percent and over 5 percent respectively in the medium term (Bouis et al., 2020) and small firms tend to benefit the most from pro-competition reforms compared to larger ones (Gal and Hijzen, 2016). Strong market institutions are also crucial to ensure that regulatory frameworks are robust and consistently enforced, further contributing to sustainable economic development.

Effective competition advocacy not only supports economic growth and government resilience but also paves the way for more and better jobs and SME development. Initiatives in this category show effects in labor markets and firm growth.

Theme 2 - Competition advocacy to leverage new technologies while limiting the risks for markets:
New technologies offer great opportunities for growth and innovation from the creation of new markets and products to revolutionizing traditional industries, even the way competition authorities conduct their investigations and advocacy work. Banking has been reimagined through fintech, procurement data can be analyzed though new machine learning models to identify cartel risks, blockchain holds substantial promise to apply smart contracts across industries, and new AI tools spread like wildfire. However, new business models and technologies can also increase the risks for anticompetitive behavior from abuses of dominance to collusion through algorithms. The WBG Digital Antitrust Database confirms a surge of investigations since 2017 amidst the more than 1,000 antitrust cases across 85 jurisdictions. By fostering an environment that encourages the use of new tools and technologies while tackling their risks, competition advocacy can propel markets forward.

This includes advocacy initiatives to foster competition in digital markets, limit the competition risks of new technologies, and support the development of new tools to identify anticompetitive behavior such as platforms to analyze tender data.

Theme 3 - Embedding competition in industrial policies through advocacy:
Governments across the world are increasingly reconsidering the role of industrial policies as a mechanism to strategically promote key sectors, especially those relevant for the green transition as well as to nurture technological advancements, and cultivate domestic talent (IMF, 2023, World Bank, 2023). Yet, evidence shows that industrial policies without a competition angle might miss the mark, while targeted sectoral interventions that foster competition yield superior results (Aghion et al., 2015 showed that the more competitive the sector that receives state aid, the more positive the effects on total factor productivity, growth and product innovation. By contrast, for sectors with low degree of competition, the effects are negative). Competition advocacy is instrumental in embedding competition principles across sectors targeted by industrial policies with a green objective from renewable energies and agribusiness to motor vehicles, semi-conductors and critical minerals.

By integrating competition principles into industrial policies, including limiting distortions of subsidies and other state support measures, competition authorities and governments can stimulate innovation, enhance efficiency, catalyze the green transformation, and promote a dynamic business environment.  

Theme 4 - Raising awareness on competition by communicating on impact and results:
Communication is a key component of effective competition advocacy, with more than 80% of the entries in the ICN-WBG Competition Advocacy contest since 2013 using media and communications as key tools in their advocacy strategies. Raising awareness on the impact and results of competition policy is essential for building public support of governments and citizens and develop a competition culture, which can lead to further support and reforms. Furthermore, showcasing how these results can be leveraged into other markets, can serve as a powerful tool for encouraging compliance and inspiring confidence in the regulatory process. Effective and innovative communication allows competition authorities to demonstrate the tangible benefits of their interventions.

This involves conducting ex-post assessments of enforcement and advocacy initiatives to evaluate their effectiveness across sectors and communicating and disseminating the benefits of competition.

Please contact Alex Ciborowska with any questions at aciborowska@worldbank.org.

The deadline for submissions was March 1, 2024 (11h59 pm, ET).

Competition agencies, sector regulators and other government bodies and non-governmental organizations promoting competition policy are welcome to apply.

If you are not a member of the ICN, you should reach out to the ICN member in your jurisdiction to inform about your intention to participate in the contest. A list of all ICN members is available here. Joint submissions from ICN members and government bodies or non-governmental organizations are encouraged.

In order to participate, candidates must complete the online survey. Key information required to apply includes: 

Stories submitted to previous editions of the contest that were not awarded are eligible for resubmission.

The online survey is the only valid application method. Applications through email messages or that fail to provide the required information in compliance with indicated character limits and blind review standards will not be considered.

Please contact Alex Ciborowska with any questions at aciborowska@worldbank.org.

The deadline for submissions is March 1, 2024 (11h59 pm, ET).

☑️ APPLY ONLINE

Submissions will undergo a rigorous assessment of the following criteria:

• Relevance of the competition issue tackled by the initiative;
• Success of the advocacy activity - results achieved;
• Impact and effects on markets, spillover effects and lessons learned;
• Advocacy strategy - creativity and originality, cooperation mechanisms deployed.

An independent panel will review the submissions and select the top stories. Winning applicants will be invited to present their stories at a joint ICN-World Bank Group event.

Winners and honorable mentions will be announced in advance of the 2024 ICN Annual Conference.