Recent research by Habibi Habibi, a lecturer at the State Islamic Institute (IAIN) Padangsidimpuan in North Sumatra, Indonesia, has shed light on the challenges faced in private enforcement of business competition law. Published in the “Prophetic Law Review,” Habibi’s study highlights significant weaknesses in the current system that hinder compensation for trade damages, ultimately affecting businesses and consumers alike.
The core issue identified is that the existing framework for private enforcement does not function optimally, particularly in its compensation role. Habibi explains that “a privately triggered public enforcement pattern which is implemented in private enforcement cannot work as compensation function optimally.” This inefficiency creates numerous obstacles for those seeking redress for trade damages, leaving many businesses vulnerable to unfair competition practices.
The research proposes a hybrid model to reformulate business competition law enforcement. This model aims to enhance private enforcement by introducing features that facilitate claims for compensation. By easing the process for claimants, the proposed changes could significantly improve the prospects for businesses harmed by anti-competitive practices to receive appropriate compensation.
For commercial sectors, the implications of this research are substantial. Enhanced private enforcement could lead to a more equitable market environment, encouraging fair competition and innovation. Businesses may find themselves better protected against unfair practices, which could foster a healthier competitive landscape. Furthermore, the proposed reforms could stimulate growth in legal services, as companies may seek assistance in navigating the improved enforcement mechanisms.
Habibi’s findings suggest that addressing the weaknesses in the current enforcement system is crucial for the future of business competition law. The research emphasizes the need for a comprehensive approach that not only identifies existing flaws but also provides actionable solutions. As the business landscape continues to evolve, the adoption of a hybrid model could serve as a pivotal step toward more effective competition law enforcement.
This research, published in the “Prophetic Law Review,” underscores the importance of reforming business competition law to better serve both businesses and consumers, ultimately leading to a more robust economic environment.
