The Competition Commission of Brunei Darussalam (CCBD) has reminded event organisers and vendors that coordinating prices or imposing price-setting restrictions at markets and festivals may risk infringing the Competition Act (Chapter 253).
In a press release issued on May 27, the CCBD said food festivals, pop-up markets and similar events have become increasingly common in Brunei Darussalam, often bringing together independent vendors offering similar goods and services.
According to the commission, competition among vendors benefits consumers through fair pricing, greater choice and improved value. However, the CCBD cautioned that certain terms imposed by organisers, such as requiring vendors to maintain minimum selling prices, could raise concerns under Section 11 of the Competition Act.
The commission explained that Section 11 prohibits agreements that prevent, restrict or distort competition, including those involving price-fixing arrangements.
“When an organiser sets terms dictating what vendors may or may not charge, those terms restrict each vendor’s ability to price its own goods and to compete,” the CCBD stated, adding that such arrangements may amount to indirect price-fixing.
The CCBD stressed that the objective is not to impose unnecessary regulation, but to ensure businesses compete independently and fairly so consumers can benefit from genuine competition through reasonable prices, better choices and improved value.
Event organisers were advised to avoid including terms and conditions such as minimum prices, recommended prices or any other requirements that may influence how vendors determine their prices.
The commission added that vendors should remain free to set prices independently based on their own costs and business considerations. Organisers were also encouraged to educate participating vendors on the importance of complying with the Competition Act and avoiding price coordination practices.
Members of the public who suspect price-fixing conduct may lodge complaints through the CCBD complaint portal.
The CCBD said it takes anti-competitive conduct seriously and will not hesitate to take action, including formal investigations, where necessary. The commission reaffirmed its commitment to promoting and protecting competition to enhance economic efficiency and consumer welfare in Brunei Darussalam.
THE BRUNEIAN | BANDAR SERI BEGAWAN
