210 COMPETITION LAW IN TOURISM 4.1. Competition Laws The objective of competition laws is to contribute to the overall welfare and sustainable economic growth by promoting market conditions, in which the nature, quality and price of goods and services are determined by competitive market forces. With the increasing globalisation and widespread adoption of the market economy, there has been a significant rise in the adoption of competition laws by States, gradually spreading from developed economies to other parts of the world. As liberalisation progresses and takes hold in more States, the traditional concept to ensure fair competition tends to progressively give away to the application of competition laws, particularly in cases where States have agreed to an open competition system. Accordingly, the Assembly urges Member States to develop competition laws and policies that apply to air transport, taking into account not only national sovereignty but also ICAO’s guidance on competition. This section of the Compendium provides ICAO’s approach to anti-competitive behaviours9, as well as the competition laws in force in each Member State10 (if available) and on a regional level11. As part of its policies and guidance on competition, ICAO has examined the issue of anticompetitive practices in international air transport. As reflected in the Conclusions of the Worldwide Air Transport Conference12, while general competition laws may be an effective tool in many cases, given the differences in competition regimes, the differing stages of liberalisation among States and the distinct regulatory framework for international air transport, there may be a need for aviation-specific safeguards to prevent and eliminate unfair competition in international air transport. This may be done through an agreed set of anti- -competitive practices, which can be used and, if necessary, modified or added to by States, as indications to trigger necessary regulatory action. The Conference further agreed that States should give consideration to the following model clause as an option for use at their discretion in air services agreements: 9 See further, https://www.icao.int/sustainability/Compendium/Pages/1-2-Anticompetitive-Activities.aspx. 10 See further, https://www.icao.int/sustainability/Compendium/Pages/1-3-CompetitionRules.aspx. 11 See further, https://www.icao.int/sustainability/Compendium/Pages/14CompetitionLawsandRegulations- -by-Region.aspx. 12 ATConf/5, Montreal, 24-28 March 2003.
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