Can FTC take enforcement action against the government?
As per the Fair Competition Act 2009, the FTC can only take action against the government, only if government engages in trade or business for the production or supply of goods or services within a market in Seychelles which is open to participation by other enterprises.
Why does prices for same products differ at different retail outlets?/ Can a business/manufacturer/producer/distributor set the price at which a product is to be sold by retailers?
In a free market economy businesses are free to set their own prices for the goods/services they offer. There is no price control/regulation. Businesses set their prices based on many factors such as production costs and profit margins. Businesses also try to attract more customers by differentiating there products from their competition, especially by offer such products at a cheaper price. However, any attempts by businesses/producers/manufacturers/distributors to set a retail price may be prohibited by the Fair Competition Act 2009 under anti-competitive agreements, abuse of dominance or as part of retail price maintenance.
Why are prices for certain products relatively high?
In a free market economy businesses are free to set their own prices for the goods/services they offer. There is no price control/regulation. Businesses set their prices based on many factors such as production costs and profit margins. Therefore, the more it costs to produce/manufacture/import a particular product, the higher its final retail price. In most cases, businesses will pass on any increase in costs to the customer.
Does FTC have the mandate to change legislation and/or government policies?
No, FTC’s mandate is to enforce the Fair Trading Commission Act 2009, Fair Competition Act 2009 and the Consumer Protection Act 2010. However, FTC can lobby to government (though opinion papers/reports/letters) on behalf of the business community/general public for change/amendment in legislation and policy where these impeded competition and the change will be beneficial to the competition process and consumers.
Should a business be able to operate in different markets for a particular sector? E.g. Can a DMC operate a hotel, car hire business, excursion facilities etc.….
There are no restrictions for a business to operate in different markets for a particular sector. Businesses are free to expand and diversify their operations. This is done in many cases to have all operations relating to the businesses conducted in-house and/or for economies of scale (efficiencies). However, depending on the sector, there may be government policies which may restrict/limit the extent of the expansion/diversification. The Fair Competition Act 2009, does allow the FTC to take action against businesses, if the purpose/consequence of the expansion/diversification is to restrict competition and provide an unfair competitive advantage to the businesses.