Competition Law Assignment Yohanes Baptista Durman Selamun 1006719633 The History Of Competition Law Competition law can

we call in other as a Antitrust Law. This law practices date back to around 50 BC where authorities appointed by the Roman Republic to protect the consumers/buyers. At that time this law is made to protect the supply of corn. At that time there are always the suppliers to interrupt the supply chain, usually at the docks, thereby driving up demand and the price consumers were willing to pay out of the loss. Roman authorities imposed heavy fines on those found to be doing this, and by 301 AD an edict on maximum prices was established under the leadership of Diocletian which traders found to be manipulating the supply and demand market faced the death penalty. Under Zeno, and later Justinian I, the penalties for violating the rules laid out for free and fair competition risked having their property confiscated and being banned from trading. In the Middle Ages, a system of merchant courts was set up along the primary trade routes where a form of international law of commerce known as the "Lex Mercatoria" was practiced. These merchant courts were run by a body of appointed merchants and not the governments of the day. Traders suspected of contravening the regulations would be dealt with speedily, ensuring the free flow of trade along the routes. In the 13th century, Henry III of England passed an Act fixing bread and ale prices and a 14th century statute declared market manipulators to be oppressors, not only of the poor, but the community at large, making them enemies of the entire country. Merchants found guilty of overcharging on items where the price had been set by authorities were obliged to pay double the sum they had received back to the injured party as punitive damages. Modern day competition law is generally accepted to have had its foundations in the Sherman Act (1890) and the Clayton Act (1914) both instituted in the United States. At the time, European countries had various forms of rules and laws to regulate monopolies and competition, but further developments, particularly after World War II and the fall of the Berlin wall in 1990, have elements of the Sherman and Clayton Acts as their foundation. With the rapid development of international trade going into the 21st century, competition and anti-trust laws have had to keep pace How about in Indonesia?As we know at the early of 90s Indonesia had a good economy condition, especially in Southeast Asia. Indonesia have a numerus natural resources and big populations, two of this factors made Indonesia into a country who has a prospective economy. Since 1997, like many other countries in South Asia, Indonesia has been in the economic crisis. Some argued that one of the factors, which triggered the condition at that time is Indonesia did not posses a clear competition policy. Like many developing and or previously non-market countries, competition policy has never been considered as concern for business. Various studies also shown that the Indonesia industrial policy in the past 30 years has caused high concentration in the several market or industries. Industrial structure shown that the market was predominantly oligopoly and the highest concentration ratio of 1 company is larger then 40 %. The data shown that more than 44 % of the industry in Indonesia have CR 4 more than 75 %. The question then arises what kindof competition policy must be

implemented to improve the oligopoly industry withhigh market concentration which for many years did not have the knowledge of competition? In a country with transition economies such as Indonesia which implement structural reforms designed to stimulate economic growth though greater reliance on the market system, concern on competition policy would naturally arise. Indonesia has an opportunity to create new conceptions of competition policy designed to promote the competitive process. One of the attempts is through enactment of competition law, lesson learnt from experiences of competition authorities from its predecessors. In the same time Indonesia realized that it has to deal with the problems of democratizations, shallow finance, limited judicial and bureaucratic abilities, state ownership of industry, extensive government regulation and pursuit of industrial policies. In attempt to end the crisis, the government adopted many new laws or regulations to resolve the problems. One of the efforts was when the Government of Indonesia enacted Law No.5/1999, Concerning the Prohibition of Monopolistic Practices and Unfair Business Competition (Undang Undang Tentang Larangan Praktek Monopoli dan Persaingan Usaha Tidak Sehat). The law regulates fair business practices and prohibits monopolistic practices and unfair business competition, by defining business conduct that harms competition through prohibited agreements, prohibited conduct, unfair business practices, and abuse of dominant position. The law also established the Commission for the Supervision of Business Competition, known as Komisi Pengawas Persaingan Usaha (KPPU), which is responsible in enforcing the law, and defined the substance of sanctions and penalties for violations of the law. Source :
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Development of Competition Policy and Recent Issues in East Asian Economies (The Indonesian Experience) Soy M. Pardede, Commissioner The 2nd East Asia Conference on Competition Law and Policy Bogor, 3-4 May 2005
Development of Competition Policy and Recent Issues in East Asian Economies (The Indonesia Experience)