Not all State corporations to be subject to Competition Act

by Franco Aloisio

Although the government has decided to amend the Competition Act in order to subject state-owned corporations to this law, not all corporations will be immediately affected.

Minister for Economic Affairs Josef Bonnici told The Malta Business Weekly some government companies might not be included in the bill, while others could be given the option to be part of the bill at a later stage.

At present, the only state-owned corporation which has committed itself to fall under the Competition Act is Maltacom. In fact, a statement issued a few months ago by the Maltacom board of directors clearly indicated the company's will to be subject to the Competition Act.

As a result of a company being exemped from the provisions of the act, the Office of the Fair Trading cannot investigate such companies when there are claims of unfair competition made against them. For instance, Vodafone could be investigated on its tariff structure or on any allegation of preferential treatment, but Maltacom, up until now, could not.

Prof. Bonnici explained that these amendments will increase competition and will ultimately benefit the customers. He said prices of certain services offered by these corporations should become more competitive.

Other corporations which could become subject to the Competition Act are Water Services Corporation and Enemalta.