Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Compliance with Competition Law: Related Issues for SMEs in Asean Countries

Author(s): Tang Van Nghia, Pham Thi, Cam Anh

Compliance is mandatory, not optional for enterprises, even for small and medium sized enterprises (SMEs). However, many enterprises have been detrimentally affected by risks of non-compliance with competition law such as severe sanctions and loss of reputation. In terms of anti-competitive aspects, there is a misunderstanding that SMEs may not face the same compliance risks as larger enterprises because anti-competitive regulations often set thresholds for control of violations. In fact, the risks of non-compliance are quite similar for every enterprise, especially when the misconduct involves unfair business practices. Thus, the paper aims to explore issues around SMEs compliance with competition law in ASEAN. This paper begins with defining SMEs in ASEAN context and focuses on the challenges faced by these firms in terms of compliance with competition law. It then discusses the importance of SMEs’ compliance with competition law, and finally the emerging issues raised by the enforcement of competition law that need to be carefully considered in the ASEAN. Our findings suggest that that developing a compliance program with reference to competition law can help SMEs do “the right thing” for customers and ensure that they compete fairly and safely in the marketplace.

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