Anwar-Ul-Haleem:
The Importance of Fair Competition Picture a race with just one runner. Sounds dull, right? That’s pretty much what markets become without competition—stale and uninspired. No innovation, no discipline on prices, and quality? Forget about it. To ensure Bangladesh’s transition to a dynamic and inclusive economy, fair competition must be a policy priority. Revitalizing BCC is a critical step toward ensuring fair competition and market integrity.
Fair competition is essential for ensuring a level playing field and driving positive outcomes for consumers and businesses alike. It ensures that consumers receive better goods and services without breaking the bank. It fosters innovation, facilitates the entry of new enterprises, and enhances overall economic efficiency.
Take public procurement, for example—worth over $30 billion a year in Bangladesh (M. S. Alam, 2025). With competition, that means more roads, better schools, and improved healthcare—all for the same taxpayer money.
How Competition Benefits Everyone
Now, let’s be clear—competition benefits more than just consumers. It’s a game changer for businesses, the government, and the economy as a whole. Specifically, effective competition can:
Ensure lower prices and better quality.
Enable Vulnerable consumers, in particular, gain greater access to affordable products and services, reducing poverty and inequality (Responsible Finance, 2018).
Promote Economic inclusion by connecting newcomers with customers who’ve been left out in the past.
Increase access to essential services, particularly for those in low-income brackets.
Boosts technological innovation as evidenced by the ride-sharing and e-commerce industries! (Jain, 2024).
Improves public sector efficiency, allowing the government to do more with less of its budget.
Competition Gaps in Public Procurement in Bangladesh
Despite these advantages, sectors like public procurement remain vulnerable due to weak enforcement. Recently, the public procurement system has faced criticism for a concerning issue: the absence of competition. A study from Transparency International Bangladesh (TIB) found that over the last 11 years, about 20.73% of all government contracts—roughly Tk 60,069 crore (or around USD 7 billion)—were awarded to companies that were the only bidders (Islam et al., 2023). Just one bid submitted for a contract? That raises concerns about collusion, inefficiency, and mismanagement of public funds.
Further examination of the TIB findings uncovers obstacles like stringent tender requirements, inadequate supplier databases, and limited digital transparency that hinder fair bidding. When competition is stifled in procurement, it’s not just a hiccup in buying—it’s a serious market failure. Things like bid rigging happen, where companies team up to fix prices or carve up contracts (OECD, n.d.). In the long haul, it’s like a hidden tax on citizens, eroding trust in public institutions and economic fairness.
In the end, governments overspend on subpar services, and new firms are blocked from entering the market. Ultimately, citizens face the consequences of reduced quality public services, increased tax burdens, and limited choices in the marketplace—impeding overall economic growth.
A Weak Competition Watchdog
Despite having the mission to ensure fair markets, BCC is pretty much running on empty:
With just 20 first and second-class officers overseeing a population of over 170 million people (BCC Annual Report, 2022-23).
The BCC faces challenges due to the lack of specialized teams investigating collusion and bid rigging, especially in public procurement. This shortcoming makes it tough for them to tackle anti-competitive practices, which is a big hurdle in maintaining fair competition in the market.
Moreover, the Competition Act, 2012 doesn’t quite capture the current market realities and regulatory demands. It falls short in addressing new challenges like the rise of digital platforms, which makes it clear that need some thorough updates to the legislation.
The BCC lacks substantial regulatory authority over public procurement, a critical area requiring robust antitrust interventions.
The BCC’s reliance on yearly government allocations and absence of direct legal avenues through specialized competition tribunals severely weaken its autonomy and agility in taking prompt, independent actions against anti-competitive practices.
Reform Priorities for a Competitive Market Environment
So, what can we do to protect the economy and rebuild trust in public spending? Urgent reforms must be implemented to address critical issues:
Detection, Leniency, and Whistleblowing: Tools to Combat Market Collusion:
First and foremost, the establishment of a cartel detection unit within the BCC is critical. This unit should operate as a dedicated department, staffed with economists, legal professionals, accountants, and data analysts with the core mission of identifying collusive behavior, especially within public procurement. Initial efforts should concentrate on high-risk industries like construction, pharmaceuticals, and ICT-related contracts to target sectors prone to collusive practices. Sustainable funding may be secured through partnerships with international donors such as the World Bank, JICA, or DFID.
Alongside this, a leniency program should be put in place to grant immunity or lighter penalties to businesses that disclose cartel activities. To encourage reporting, it is crucial to have legal safeguards that guarantee anonymity and shield informants from reprisals. For example, the UK and Japan have successfully lowered expenses using comparable methods (Allen & Overy, 2020).
To strengthen the detection and reporting of anti-competitive behavior, a whistleblower rewards program—modeled after successful frameworks by the European Commission and South Korea’s KFTC—should be introduced (Special Report: Competition & Antitrust, 2020).
B. Update the Competition Act for the Digital Age:
To complement these institutional reforms, the legal framework itself must also evolve. Urgent updates needed in the Competition Act, 2012 to address the realities of the digital age. New provisions should also implement ex-ante merger oversight in pivotal digital and consumer-oriented sectors, while ensuring protections for whistleblowers. To resolve jurisdictional complexities, formal mechanisms for coordination must be established between the BCC and relevant sector regulators, such as the Bangladesh Telecommunication Regulatory Commission (BTRC).
Key updates could include:
Monitoring algorithmic pricing (OECD, 2021)
Limiting self-preferencing by dominant platforms
Setting approval requirements for mergers and acquisitions in relevant markets
Offering protection and incentives for whistleblowers (Maslen, 2018)
C. Strengthen BCC’s Capacity Through Global Partnerships:
To enhance its operational skills, the BCC should seek out key partnerships worldwide. Collaborating with organizations such as UNCTAD, OECD, ICN, and the European Commission can provide crucial training, tools, and tried-and-true methods for the BCC. Setting up a special “Competition Policy Fellowship” would attract bright graduates in areas such as economics, law, accounting and data science. Similarly, mid-career professionals could sharpen their know-how through certified training courses offered by places like Oxford’s CCLP or the CRESSE network.
The comprehensive capacity-building roadmap should focus on acquiring specialized digital tools such as BRIAS (KFTC’s cartel screening tool), AI for detailed market analysis, real-time price monitoring software, and advanced forensic investigation capabilities to enhance the BCC’s investigative capabilities.
Moreover, mandating annual financial disclosures for BCC officers, submitted to the President through the Ministry of Commerce, would enhance transparency and foster public trust. Establishing a comprehensive plan (2025–2030) to oversee strategic recruitment, merit-based promotions, and continuous skills development at the Commission It is crucial to recognize the pivotal role of human capital in this context. Implementing a capacity development project would significantly enhance the BCC’s long-term strength and effectiveness.
D. Enable Surprise Inspections and Legal Enforcement:
Conducting surprise inspections, known as ‘dawn raids’ in advanced legal systems, is crucial for timely detection of anti-competitive practices. These involve unannounced searches of business locations to collect evidence of possible violations. Moreover, it is important to strengthen the BCC’s legal and institutional capabilities so it can carry out its responsibilities with the necessary authority and precision. Implementing pre-merger notification requirements for deals that could significantly shift market dynamics is necessary.
Additionally, establishing a Competition Tribunal or designating specialized commercial courts would empower the BCC to enforce its decisions without the procedural holdups of the outdated Public Demands Recovery Act, 1913. Implementing measures that enable the BCC to recover dues directly through these specialized courts would significantly enhance enforcement efficiency.
The Future Outlook for Bangladesh’s Competitive Landscape
As Bangladesh strives for upper-middle-income status, revitalizing the BCC isn’t just a nice-to-have; it’s absolutely essential. A competitive market economy can do wonders. It will:
Attract both foreign and local investments
Create employment opportunities
Ensure wise use of development funds
Empower both entrepreneurs and consumers
Ultimately, these reforms are not just institutional tweaks—they are the backbone of a more resilient economy. The key to making this vision a reality lies in having a robust and empowered BCC that can drive the desired market reforms and outcomes. Empowering the BCC is essential to unlocking a future where innovation thrives, public trust grows, and all citizens reap the benefits of a fair and open market.
(The writer is a Deputy Secretary of Bangladesh government )
