FAIR TRADE PRACTICES OF PUBLIC ENTERPRISES UNDER ETHIOPIAN LAW: THE LAW AND PRACTICES; WONDO TRADING AND INVESTMENT COMPANY IN FOCUS

Abstract

This study was geared to analyse the fairness of the trade competition among private entities and public enterprises. To achieve this objective, the attempt was made to examine theoretical and legal frameworks, the fairness of the laws and competition practice by utilizing qualitative research design with predominantly doctrinal legal research method. This has been accompanied by documentary analysis and key informant interview as data collection strategy. The study has found out, market based view, resource based view, trusteeship principle, and survival and growth of business principle and economic efficiency theory as theoretical foundation of the competition and competition laws among which economic efficiency is basis for Ethiopian competition laws. Besides, various national laws are identified as legal frameworks governing competition in Ethiopia. Study has also revealed that, the legal provisions governing competition appears fair among private entities and public enterprises. However, study has disclosed practical fairness of competition among private commercial entities public enterprises is inconceivable due to couple of defects noticeable; among which loopholes regarding the very applicability of relevant law, and lack of implementation regulations; and executive intervention and inequality of playing field as critical legal and practical factors challenging fairness of competition respectively among private commercial entities and public enterprises. Accordingly, study has concluded that impartial law enforcement is doubtful regarding public enterprises and pillars of fair competition are being tainted by different legal and practical factors. Therefore, researcher has recommended that, House of Peoples Representatives to revisit relevant law and avoid ambiguous phrase and resulting subjectivity to different interpretations and Council of Ministers and relevant Ministry to issue regulation and directives and public notices respectively and call for impartial enforcement of competition laws even handily and government’s reduced engagement in the economy.