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Monopsony, powerful buyers and small sellers: analysis of Malaysian competition law and lessons learnt from Indonesia

Ahamat, Haniff and Abdul Rahman, Nasarudin and Al Anshori, Milyan Risydan (2020) Monopsony, powerful buyers and small sellers: analysis of Malaysian competition law and lessons learnt from Indonesia. International Journal of Globalisation and Small Business, 11 (3). pp. 241-257. ISSN 14793059

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Abstract

Powerful buyers have become a problem stifling the market presence of micro, small and medium businesses. Their power in both upstream and downstream markets may allow them to manipulate prices or output. The authors look at whether competition law can address such problem particularly in Malaysia. They use monopsony as the theoretical framework and find that the Malaysian Competition Act 2010 can only be used indirectly against the conduct of powerful buyers due to the lack of express reference to the term monopsony. The existing rules are more often operationalised on the supply side rather than the demand side, making proving the anti-competitive conduct of those buyers difficult. In Indonesia, the main competition legislation i.e. the Law No. 5 of 1999 can be directly used but proving legal violation is also difficult. However, Indonesia has a specific law that protects small sellers from powerful buyers' use of their market power

Item Type: Article (Journal)
Additional Information: 6850/88335
Uncontrolled Keywords: competition law; competition policy; socio-economics of market regulation; promotion of small business; law and supply chain management; Indonesia
Subjects: K Law > K Law (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws
Depositing User: Mrs Suhani Saarani
Date Deposited: 11 Feb 2021 14:18
Last Modified: 11 Feb 2021 14:18
URI: http://irep.iium.edu.my/id/eprint/88335

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