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Regulation speed
Hong Kong : Asia's consumers suffer from producers who abuse their market power has long been known. This makes it all the more regrettable that Asian governments are only now starting to fight back on their consumers' behalf. For example, Japan's antitrust watchdog is now investigating the country's telecoms giant, NTT, in the biggest case of its history. Despite the burst of activity, most Asian governments still give a low priority to antitrust. Hong Kong and Singapore, the region's two most developed markets outside Japan, still do not have a law against cartels.This is in contrast to Europe and America. In Asia, the temptation for producers to play foul may be even greater than in Europe or America, because economic power tends to be concentrated in fewer hands. Nor does Asia have consumer lobbies to match those in western countries, although a middle class of wiser and more demanding shoppers is starting to appear, especially in more developed markets. But consumer lobbies not backed by law and force are ultimately impotent. Most cartels are exposed by insiders who inform the authorities and these tend not to risk coming forward if no law is being broken. It may not be enough for governments to attack cartels one industry at a time, as a sectoral approach would fall short when abuse occurs across industries. In Asia, where the biggest companies are not focused on one industry but sprawl across many, only comprehensive competition laws are likely to do the trick. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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