WELCOME

TO
OUR
PRESENTATION
1

CULTURAL
COMPARISON
BETWEEN
GRAMEENPHONE
&
TELETALK
2

What is Culture?
Culture is the set ofshared
attitudes,values, goals,andpracticesthat
characterizes an institution, organization
orgroup

SIMILARITIES

 Metamorphosis: According to organizations policies , by

adopting & implementing necessary initiatives, both GP &
Teletalk ensures the new employee changes & adjusts to the
work,work group, & organization
stories: It is a common traits in both GP & Teletalk is anchor the
present into the past &provide explanations & legitimacy for
current practices.
Rituals: Ritual is repetitive sequences of activities that expresses
& reinforce the key values of the organizations. For example:
Both GrameenPhone & Teletalk celebrate their first inauguration
day & special events
Language: Both GP & Teletalk use professional languages in
terms of conversations & communications
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DISSIMILARITIES

 Innovation & risk taking: In Grameenphone, the company always

encourages innovative ideas & encourage employee view point &
participation. But they also follow the moderate risk taking
policy. Comparing it with Teletalk, they are conservative as they
have to follow the strict government rules & regulations & work
procedures
Outcome orientation: In Teletalk the managements are more
focused towards results or outcomes & Grameenphone put
emphasis on techniques & processes to achieve the desired results
or outcomes
People orientation: The management decisions are more
authority oriented rather than employee oriented , so work range
are narrow & task focused in Teletalk. In this case Grameen
phone always maintains a qualitative balance
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 Aggressiveness: The employees of Grameenphone are more

competitive & enjoy a bit more liberty as the promotion & the
employee career development do not follow fixed ratio process.
In Teletalk the employees are more easy going as they have high
job security & enjoy government facilities.
Material symbols: GP does more advertising & branding than
Teletalk

10

CHARATERISTIC
S

GRAMEENPHONE

TELETALK

1.Strong
sense of
purpose

1. All the employees

have the common
sense of purpose

1.Different employees
have different sense of
purpose

3.Humanistic 3. GP is renowned for 3. Teletalk is not so

work
its corporate social
much renowned for its
practices
responsibilities
humanistic work
practices

3.Emotional
Stability

3.Training process
makes Employees
more emotionally
stable

3.Training process does

not focus on emotional
stability rather focuses
on performance of work
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CHARATERISTIC
S

GRAMEENPHONE

4. Extraversion 4. Emphasizes on
team-oriented tasks

5. Positive
affection

5.Facilities in Grameen
phone helps employees
keep their positive
affection going.

TELETALK

4. Emphasizes on
Group-oriented tasks

5. No adequate facilities
to keep their employyees
positive affection going

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CULTURAL
COMPARISON
13

15

SIMILARITIES

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WHY REGULATION?
Externalities (private cost < social cost)
Public goods (free rider problem)
Information asymmetry (lemons market)
Market failure (systemic risk)
Equitable justice (production & distribution)
Consumer welfare (growth vs. development,
poverty etc.)

17

REGULATING
COMPETITION

Competition Policy

Competition Law
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COMPETITION POLICY
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DEFINITION OF COMPETITION
POLICY
Competition Policy refers to a set of government
measures that enhance competition or competitive
outcomes in the markets.
It includes both economic policies that enhance
competition and competition laws.
Competition Policy = f (ecoc policy, compn law)
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RELEVANT ECONOMIC POLICIES

International trade policy
Industrial policy
Privatization reform policy
Labor policy
Exchange rate policy
Fiscal policy
Monetary policy
Regulatory reform policy
Intellectual property rights policy

21

COMPETITION LAW
22

COMPETITION LAW
The most ancient example of competition law is the Lex
Julia de Annona of Rome in around 50BC. But in todays
world we havethe Sherman Act, 1890
United States:
United Kingdom: the Monopolies and Restrictive Practices
(Inquiry and Control) Act, 1948
European Union: the Treaty of Rome, 1957
the Act Against Unfair Restraints of
Germany:
Competition, 1957
the Act Concerning Prohibition of Private
Japan:
Monopoly and Maintenance of Fair Trade,
1947
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COMPETITION LAW CONTD.

Since the beginning of the 1990s, the number of
systems of competition law has proliferated.
Competition law is now in place in all six
continents, and in all kinds of economieslarge,
small, continental, island, advanced, developing,
industrial, trading, agricultural, liberal and postcommunist.
More than half of WTO members have adopted a
competition law.
24

IN BANGLADESH
In the absence of an established and effective
competition legislation, restrictive trade practices
have prevailed in the markets and eroded
consumer interests & rights.
There are no evidences documenting the anticompetitive behavior of business companies
operating in Bangladesh.
The most common anti-competitive actions are
shown in the diagram25

IN BANGLADESH (Cont)

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LEGISLATIVE HISTORY OF
COMPETITION LEGISLATION
Monopolies and Restrictive Trade Practice
(Control and Prevention) Ordinance, 1970 is
valid but never got implemented.
Recently Bangladesh has enacted the
Competition Act, 2012:

To encourage, ensure and maintain

competitive environment in business; and
To prohibit, control and eradicate anticompetitive practices.
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CONTENTS OF THE ACT

The Act contains 7 chapters and 46 sectionsChapter I:
Preliminary
Chapter II:
Establishing Bangladesh Competition
Commission, etc.
Chapter III:
Anti-Competitive Agreements, abuse
of dominant position, etc.
Chapter IV: Complaints, Investigation, Orders, etc.
Chapter V:
Review, Penalties, Appeal, etc.
Chapter VI: Financial Matters of the Commission
Chapter VII: Miscellaneous
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PROHIBITED/REGULATED
ANTI-COMPETITIVE
PRACTICES
Anti-competitive agreements (section 15)
Abuse of dominant position (section 16)
Anti-competitive Combination (section 21)
(acquisitions and mergers)
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ANTI-COMPETITIVE AGREEMENTS
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PROHIBITION ON ANTICOMPETITIVE AGREEMENTS

Section 15 of the Act:
No person shall enter into any agreement,
directly or indirectly, in respect of production,
supply, distribution, storage, acquisition or
control of goods or provision of services, which
causes or is likely to cause an adverse effect on
Competition or creates monopoly or oligopoly in
the market.
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ANTI-COMPETITIVE
AGREEMENTS
1.

Horizontal agreements
(a) Price fixing agreements [section 15(2)(a)(i)]
(b) Bid-rigging agreements [section 15(2)(a)(ii)]
(c) Market allocating agreements [section 15(2)(b) & (c)]
(d) Output restricting agreements [section 15(2)(b) & (c)]
(e) Joint boycott

2.

Vertical agreements
(a) Tie-in sale agreement [section 15(3)(a)]
(b) Exclusive supply agreement [section 15(3)(b)]
(c) Exclusive distribution agreement [section 15(3)(c)]
(d)Refusal to deal [section 15(3)(d)]
(e) Resale price maintenance [section 15(3)(e)]
(f) Quantity forcing

32

WHEN ANTI-COMPETITIVE
AGREEMENTS ARE TOLERATED?

To protect intellectual property right [section

15(4)(a)]

To protect the right of any person to export

goods [section 15(4)(b)]

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ABUSE OF DOMINANCE

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DOMINANCE

Dominance means having substantial market

power.

When one firm acts as a price setter and faces

smaller price-taking firms, it is called a
dominant firm which typically has a large
market share.

The smaller price-taking firms are called

fringe firms.
35

PROHIBITION ON ABUSE OF
DOMINANCE
Section 16 of the Act :

No corporation or business entity shall

abuse its dominant position.

36

WHAT IS ABUSE OF
DOMINANT POSITION?
Section 16(2) of the Act:
there shall be an abuse of dominant position, if an
enterprise(a) directly or indirectly, imposes unfair or
discriminatory condition in purchase or sale of
goods or service, or price in purchase or sale
(including predatory price) of goods or service,
(b) limits or restricts - i. production of goods or
provision of services or market therefore, or ii.
technical or scientific development relating to
goods or services to the prejudice of consumers, 37

Contd
(c) indulge in practice or practices resulting in
denial of market access, or

(d) makes conclusion of contracts subject to

acceptance by other parties of supplementary
obligations which, by their nature or according
to commercial usage, have no connection with
the subject of such contracts,
(e) uses its dominant position in one relevant
market to enter into, or protect, other relevant
market.

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TYPES OF ABUSE OF
DOMINANCE
Exploitative practices
IPR and Excessive pricing
Price Discrimination
Tie-ins
Exclusionary practices
Refusal to deal
Predatory pricing
Non-price predation
Exclusive dealing
Boycott

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ANTI-COMPETITIVE
COMBINATIONS

40

COMBINATIONS
Sec 21 of the Act:

Anti-competitive combinations are prohibited.

Other combinations require approval of the

Bangladesh Competition Commission.

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TYPES OF COMBINATIONS
Horizontal combinations
Vertical combinations
Conglomerate combinations

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REGULATORY CHALLENGES

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REGULATORY CHALLENGE
I

Compatibility with other laws have not been

adequately researched. Will there be any
possibility of regulatory arbitrage?
For example, some Anti-competitive
Agreements are also punishable under the
Holding and Black Market Act, 1948, the
Essential Articles (Price Control and AntiHoarding) Act, 1953, and the Special Powers
Act, 1974.
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REGULATORY CHALLENGE
II

Concurrency and conflict with sectoral

regulators might frustrate the purpose of
the competition law.
For example, how would the SEC or the
BERC would envisage its regulatory role vis-vis BCC?

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REGULATORY CHALLENGE
III
Absence of Investigating arms may go
against the principle of natural justice.
Bangladesh Competition Commission is a
quasi judiciary body.
One cannot be judge of ones own cause.

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REGULATORY CHALLENGE
IV
Economic factors that can be used to
determine whether an agreement has adverse
effects on competition has not been generally
or specifically identified.
In absence, is there too much discretion
given to the Commission?

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REGULATORY CHALLENGE
V
No provision for Leniency Program was
included in the Act.
Market regulation would not benefit from
the service of whistleblowers.

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REGULATORY CHALLENGE
VI
Who will run the show?
Does Bangladesh have enough competition
experts?
Is there not also mass ignorance about
competition law and policies? (participatory
regulation vis--vis big stick regulation; market
chit-chat; etc.)
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ROLE OF MEDIA

DISCLOSURE
through
RESPONSIBLE
REPORTING
50

THANK YOU
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