The formulation of the ASEAN Economic Community (AEC) will transform its member
states into countries with a free flow of goods, services, capital, and skilled labor. On one hand,
the establishment of the AEC marks a new era of economic prosperity. On the other hand, the
advent of the AEC accompanies with a variety of prospective trade issues, which could adversely
affect economic integrity among all members, such as international price fixing cartel, illegitimate
mergers which likely to create monopolistic condition in a certain market, and potentially abuse
of market dominance, price fixing cartels.
Against this backdrop, transnational corporations potentially pose a serious threat to a
free and fair competition following the removal of internal trade barriers through employing or
abusing their position to squeeze competitors out of the market. Conversely, the same
transnational corporations are likely to secretly collude with domestic entities to fix the price of
products or limit production. Furthermore, due to political, cultural and legal perspectives
regarding cross-border business transactions vary among member countries. Competition Policies
and Law (CPL) can serve as a touchstone to help ASEAN’s members comply with the agreement
on a neutral and non-discriminatory basis. The efficient implementation of CPL ensures that the
playing field is equal for all competitors in the market. Additionally, as States Owned Enterprises
(SOEs) in each member country will eventually privatize within in a few years, competition law
The formulation of the ASEAN Economic Community (AEC) will transform its memberstates into countries with a free flow of goods, services, capital, and skilled labor. On one hand,the establishment of the AEC marks a new era of economic prosperity. On the other hand, theadvent of the AEC accompanies with a variety of prospective trade issues, which could adverselyaffect economic integrity among all members, such as international price fixing cartel, illegitimatemergers which likely to create monopolistic condition in a certain market, and potentially abuseof market dominance, price fixing cartels.Against this backdrop, transnational corporations potentially pose a serious threat to afree and fair competition following the removal of internal trade barriers through employing orabusing their position to squeeze competitors out of the market. Conversely, the sametransnational corporations are likely to secretly collude with domestic entities to fix the price ofproducts or limit production. Furthermore, due to political, cultural and legal perspectivesregarding cross-border business transactions vary among member countries. Competition Policiesand Law (CPL) can serve as a touchstone to help ASEAN’s members comply with the agreementon a neutral and non-discriminatory basis. The efficient implementation of CPL ensures that theplaying field is equal for all competitors in the market. Additionally, as States Owned Enterprises(SOEs) in each member country will eventually privatize within in a few years, competition law
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