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Challenges and Impacts of Unfair Trade Practices in ASEAN

VOVNews, March 11th, 2011

This is the major theme of a conference held in Hanoi on March 11 by the Consumer Unity and Trust Society (CUTS) Hanoi Resource Centre in collaboration with the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade (MoIT).
With the support of the International Development Research Centre (IDRC), Canada, the conference aimed to launch a two-year project entitled “Study on Unfair Trade Practices in select ASEAN countries”, from 2011-2013.

This is the result of a research cooperation programme between the CUTS Hanoi Resource Centre and partners from Indonesia, Malaysia, the Philippines, and Thailand. The project aims to fill the aforementioned void in the ASEAN region by generating and supporting the discussions/dialogues therein on issues related to Unfair Trade Practices (UTPs).

The conference brought together Vietnamese and foreign experts and academicians in Vietnam and abroad, as well as partners, advisors and governmental officials working in the field to discuss and exchange views on the nature and prevalence of UTPs in the region. They also raised their concerns about the impacts of UTPs on business growth and consumer welfare.

UTPs, otherwise called unfair competition practices, constitute an important part of antitrust statutes of several countries in the world. In some cases, UTPs are handled by a whole separate piece of legislative act – a law on unfair competition.

UTPs have considerable, sometimes quite severe, implications on business welfare, especially that of small-and-medium-sized enterprises (SMEs), and consumer welfare. However, in the Association of Southeast Asian Nations (ASEAN), UTPs have remained in low profile for different reasons.

Addressing the event, VCA General Director Bach Van Mung said that there is growing concern in almost all economies, especially in developing countries where still lack a complete legal framework on this issue. “UTPs negatively impact on not only the competition environment but also consumer rights,” he stressed.

According to Mr Mung, eight out of ten ASEAN nations have issued laws and regulations relating to the control of UTPs. However, he said, this is a complicated issue so it is no easy task to translate these laws and regulations into practice.

The VCA General Director expressed his hope that the project on UTPs and its challenges and impacts would help regional countries complete the legal system to create a healthy competition environment for both domestic and foreign businesses.

More in the news:

· http://www.vneconomynews.com/2011/03/challenges-and-impacts-of-unfair-trade.html

· http://www.vnbusinessreg.com/challenges-and-impacts-of-unfair-trade-practices-in-asean/

· http://vietnambusiness.asia/challenges-and-impacts-of-unfair-trade-practices-in-asean/

Advertising the need to change

October 03, 2011

VNEconomyNews.com – Out of control advertising has sparked an urgent need for stringent regulations in the new Advertising Law.

At the National Assembly’s Standing Committee meeting last week, National Assembly’s Committee for Science, Technology and Environment head Phan Xuan Dung said that the draft law, which was under discussion and would oust the Advertising Ordinance, would tackle advertising not reflecting the true quality of products.
Read more →

Samsung’s legal woes threaten to crimp tablets, chips

September 27, 2011

SEOUL: An intensifying legal battle between Samsung Electronics Co and Apple Inc is expected to crimp growth at one of the fastest growing businesses of the Korean company, while threatening to worsen business ties with the firm’s largest customer.

The two technology firms have been locked in an acrimonious global battle over smartphone and tablet patents since April, and Apple has successfully blocked Samsung from selling its latest tablets in Germany and some smartphone models in the Netherlands.

The iPhone and iPad maker has also forced its rival to indefinitely delay launching its new Galaxy tablets in Australia, where a court will give its ruling this week.

Another loss could dent Samsung’s ambitious attempt to close the gap with Apple in the global tablet market. The Galaxy gadgets, powered by Google’s Android operating system are seen as the biggest challengers to Apple’s mobile devices.

“Samsung’s tablet business will be most affected and its chip business will also take a hit as Apple moves to diversify away from Samsung to the likes of Toshiba,” said Nho Geun-chang, an analyst at HMC Investment Securities.

“But taking passive steps for fear of losing its biggest customer will slow down strong growth momentum at its telecoms business, which Samsung doesn’t want to see as the business is set to become the biggest earnings generator this year and make up for weakening chip profits. It’ll be a costly battle for Samsung.”

The South Korean conglomerate supplied Apple with about $5.7 billion in components last year, some 4 percent of Samsung’s total sales.

Apple’s portion grew to 5.8 percent of Samsung’s sales in the first quarter, driven by booming iPad and iPhone sales, which Samsung supplies chips for, along with Japan’s Toshiba. Apple and Samsung are scrapping for top spot in the smartphone market, having overtaken the market leader for the past decade, Finland’s Nokia , in the second quarter.

Samsung still trails badly in tablet sales, where Apple racked up 14 million iPad sales in the first half, versus analysts’ sales estimates of about 7.5 million Samsung tablet products for all of 2011.

Samsung and Apple will square off in a more significant U.S. court hearing next month about an injunction case.

Technology experts say Apple’s intellectual property battle with Samsung Electronics is part of its broader strategy of using the courts to help cement the unassailable lead its iPad has in the tablet market.

Samsung is betting on its new tablets to close the gap with Apple and reach its target of increasing tablet sales by more than five folds this year.

SUPPLIER AND RIVAL Analysts said what may become a longer-term challenge for Samsung, is losing chip orders from Apple.

“For Samsung, (the) biggest concern is reduced order from Apple. Without Apple’s big backing, it would be difficult for Samsung to boost its chip market share sharply,” said Nho at HMC.

“Apple is leveraging the fact that it’s got alternative suppliers. They may offer inferior or more expensive components but it’s something consumers barely notice and something Apple can successfully use to pressure Samsung.”

Samsung’s smartphone business has been growing furiously, powered by its flagship Galaxy lineups. Some analysts expect Samsung to overtake Apple as the world’s No.1 smartphone vendor and report record profits in July-September, as it has much broader lineups than the high-end focused Apple.

Samsung’s smartphone sales soared more than 500 percent in the second quarter, easily eclipsing Apple’s 142 percent growth, though Apple sold about 1 million more units. Nokia sales fell 30 percent.

Samsung and Apple are suing each other in 9 countries over 20 cases. Apple first fired salvo in April by suing Samsung in a California court, saying the Galaxy lineup devices infringed on its mobile technology patents and design.

Samsung shot back with claims of its own. Some analysts said Samsung’s aggressive stance could help it gain some support from consumers.

“These legal battles are raising perception among consumers that Samsung is the only one capable of competing against Apple,” said Choi Do-youn, an analyst at LIG Investment & Securities.

Despite the global court cases, both companies could end up settling the cases, HSBC said in a note.

“The most likely scenario is an out-of-court settlement, after a long-drawn IP battle… As in the case of the Nokia-Apple dispute, this issue too is likely to be settled out of the court, after a long drawn legal dispute,” said HSBC analyst Daniel Kim. – Reuters/.

Samsung files counter claim in Australia against Apple

September 19, 2011

SYDNEY (Reuters) – Samsung Electronics Co has filed a counter claim in an Australian court, accusing Apple of infringing its wireless patents related to the U.S. firm’s iPhone and iPad products.

The move comes after Samsung last month delayed the launch of its latest Galaxy tablet computer in Australia over a global patent dispute with Apple.

Samsung filed the claim with the Federal Court of Australia, New South Wales Registery, on September 16, a media statement released by Samsung Electronics Australia said.

The claim says Apple infringed seven Australian patents owned by Samsung related to wireless communications standards by Apple’s iPhone 3G, iPhone 3GS, iPhone 4 and iPad 2 products.

It also says the patents that Apple relied on in its claims against Samsung in relation to the Galaxy Tab 10.1 were invalid and should be revoked by the court, according to the statement.

Samsung has previously counter sued Apple over patents in South Korea, Japan and Germany.

An Apple spokeswoman in Australia could not immediately be reached for comment.

Samsung and Apple have been locked in a battle over smartphones and tablets patents since April as Apple seeks to rein in the growth of Google’s Android phones by taking direct aim at the biggest Android vendor, Samsung.

Apple, which has conquered the high end of the phone market with its iPhone, has argued that Samsung had infringed on its patents and the Galaxy line of products “slavishly” copied its design, look and feel. It is fighting legal battles in the United States as well as Europe, South Korea and Australia.

Apple scored a legal victory in Germany earlier this month, when a German court barred Samsung’s local unit from selling its Galaxy 10.1 tablets in Europe’s biggest economy. Samsung has since announced it will appeal the court’s decision.

(Reporting by Amy Pyett; Editing by Ed Davies and Muralikumar Anantharaman)

 

Christian Louboutin denied injunction in court battle over rival brands’ right to use red sole

Christian Louboutin denied injunction in court battle over rival brands’ right to use red sole

August 11, 2011

Christian Louboutin has lost a round in its New York court battle against Yves Saint Laurent.

The luxury footwear label, which is a favourite with stars including Kate Moss, Kim Kardashian and Victoria Beckham, is seeking more than $1million damages over claims that its distinctive red lacquered sole had been ‘copied’ by rival brands.
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Gathering Evidence on Unfair Trade Practice in ASEAN: Challenges & Impacts

11th March, 2011, Hanoi, Vietnam

Inaugurating a one-day International Conference on Competition marking the launch of a two year regional project, entitled ‘Study on Unfair Trade Practices in select ASEAN countries’, Mr. Bach Van Mung, Director General, Vietnam Competition Authority (VCA) said, “that it is important to deal with UTPs in-order to ensure an effective competitive environment and protection of consumer welfare. According to Mung, it is a big challenge for Vietnam and all ASEAN Countries and thus it is important for competition agencies in ASEAN countries to collaborate together and ensure the end of UTPs”. He emphasised the importance of lesson sharing, dialogues within the framework of the project which would benefit the relevant stakeholders in the ASEAN countries. He affirmed the support of VCAD to ensure successful implementation of the project and acknowledged the support for CUTS International, India and International Development Research Centre (IDRC), Canada.

CUTS Hanoi Resource Centre is implementing the project in five ASEAN countries i.e. Indonesia, Malaysia, Philippines, Thailand and Vietnam with support from the IDRC The project is being initiated through the conference jointly organized by CUTS International, a civil society organisation which has done pioneering work in the field of competition and regulation in India and other developing countries and Vietnam Competition Authority (VCA) – Ministry of Industry and Trade of Vietnam.

Speaking at the inaugural session, Mr. Pradeep S Mehta, Secretary General, CUTS International, emphasised the importance of effective implementation of Competition and Consumer Protection legislations to effectively counter Unfair Trade Practices. Further, Mehta provided a detailed outline of the work of CUTS in the areas of competition policy and law. He indicated that CUTS is committed to assisting developing and least developed countries of Asia and Africa to advocate for competition reforms as a means to achieve economic development and consumer welfare.

Ms. Alice Pham, Director, CUTS Hanoi Resource Centre provided an overview of the project, various activities and said that at the Association of Southeast Asian Nations (ASEAN) level, UTPs have remained a low key for a multitude of reasons. Thus, this project aspires to fill this void in the ASEAN region by generating and supporting the discussions/dialogues therein on issues related to UTPs. Pham emphasised that the project is designed on two main pillars – research and advocacy. Capacity building and networking elements are built in the whole implementation process of the project.

The meeting brought together more than 40 experts and academicians within and beyond the ASEAN region, as well as partners, advisors and select local government officials working in the field, press to discuss and exchange views on the nature and prevalence of UTPs in the region, their impacts on business growth and consumer welfare, and the legal and regulatory framework as well as institutions to deal with them, etc.

For further details, please contact:

Alice Pham, CUTS HRC, Director ( ap@cuts.org; +84986310179)

To Tam, Programme Officer ( tt@cuts.org; +84974765155)

Tel: +84 (0) 466 739 486; Fax: +84 (0) 462 763 606; Website: www.cuts-hrc.org

Challenges and impacts of unfair trade practices in ASEAN

VOVNews, March 11th, 2011

This is the major theme of a conference held in Hanoi on March 11 by the Consumer Unity and Trust Society (CUTS) Hanoi Resource Centre in collaboration with the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade (MoIT).

With the support of the International Development Research Centre (IDRC), Canada, the conference aimed to launch a two-year project entitled “Study on Unfair Trade Practices in select ASEAN countries”, from 2011-2013.

This is the result of a research cooperation programme between the CUTS Hanoi Resource Centre and partners from Indonesia, Malaysia, the Philippines, and Thailand. The project aims to fill the aforementioned void in the ASEAN region by generating and supporting the discussions/dialogues therein on issues related to Unfair Trade Practices (UTPs).

The conference brought together Vietnamese and foreign experts and academicians in Vietnam and abroad, as well as partners, advisors and governmental officials working in the field to discuss and exchange views on the nature and prevalence of UTPs in the region. They also raised their concerns about the impacts of UTPs on business growth and consumer welfare.

UTPs, otherwise called unfair competition practices, constitute an important part of antitrust statutes of several countries in the world. In some cases, UTPs are handled by a whole separate piece of legislative act – a law on unfair competition.

UTPs have considerable, sometimes quite severe, implications on business welfare, especially that of small-and-medium-sized enterprises (SMEs), and consumer welfare. However, in the Association of Southeast Asian Nations (ASEAN), UTPs have remained in low profile for different reasons.

Addressing the event, VCA General Director Bach Van Mung said that there is growing concern in almost all economies, especially in developing countries where still lack a complete legal framework on this issue. “UTPs negatively impact on not only the competition environment but also consumer rights,” he stressed.

According to Mr Mung, eight out of ten ASEAN nations have issued laws and regulations relating to the control of UTPs. However, he said, this is a complicated issue so it is no easy task to translate these laws and regulations into practice.

The VCA General Director expressed his hope that the project on UTPs and its challenges and impacts would help regional countries complete the legal system to create a healthy competition environment for both domestic and foreign businesses.

More in the news: