This Paper suggests that in developing countries, especially where
small and poor markets prevail, abuse of dominant power-or
monopolization, as it is known in the United States-can be much more damaging to the economy than in developed countries. It pays special
attention to the abuses that state-owned firms and recently privatized
monopolies can inflict on developing economies and suggests that collusion
between the state and dominant enterprises can seriously hamper the
economy and stifle development. This Paper analyzes the main concerns of
developing countries in this respect and provides a list of examples of
concrete cases of abuse of dominance affecting developing-country
economies. This Paper recommends that far from challenging only pricefixing cartels, as is sometimes advocated by representatives from developed
countries, competition authorities in developing countries should devote
increased attention to abuse of dominance, and their powers in this respect
should be strengthened when they must challenge abuses by dominant firms,
which are sometimes protected by their own government.
Description
The Future of Monopoly and Monopolization Symposium
