The Journal of Modern Research on Administrative Law

The Journal of Modern Research on Administrative Law

Resolving the conflict of interests of state companies in the field of competition law

Document Type : Original Article

Authors
1 PhD student in private law, Gorgan branch, Islamic Azad University, Gorgan, Iran
2 Assistant Professor, Department of Law, Azadshahr Branch, Islamic Azad University, Azadshahr, Iran
3 Assistant Professor, Department of Law, Gorgan Branch, Islamic Azad University, Gorgan, Iran
10.22034/mral.2023.1990773.1444
Abstract
A conflict of interest is a situation in which some individuals, whether natural or legal entities, can make one or more decisions related to a specific issue, and if the decision maker makes a decision in favor of certain individuals, a conflict of interest has occurred. This is the case with state-owned companies. It is more important because governments give legitimacy to this process by making regulations. Considering that regulation can provide the fields for the activities of state-owned companies, deregulation in the form of removing or modifying regulations. It can balance the presence of private and public companies in the economy. Based on the principles stipulated in the competition law, the possibility of conflict of interest in the case of state-owned companies is more than other companies active in the economic field. Based on this, the main question that this research seeks to answer is to examine legal solutions to resolve The conflict is between state-owned companies. The solutions presented in this article can be divided into two categories: normative and structural. The research method in this research is descriptive-analytical, and the library method was used to collect the sources. The results of this research show that deregulation and creating equal opportunities between public and private companies play an important role in improving the performance of these companies and resolving conflicts.

Highlights

During his life, a person is placed in various positions and positions, which naturally may not be compatible with each other and cause a conflict of interests. The greatest sensitivity is related to the conflict of private and public interests, where public office holders in some cases are in a conflict situation between their public goals and the interests of their private lives. This conflict may be between the government and individuals, which is of course very exciting.

Competition rights are mentioned as one of the necessary and effective factors in the success of free market economic systems. It is believed that if healthy competition prevails among the production and distribution activists. Financial efficiency is achieved and public welfare increases. The competition causes the activists in the field of production and distribution of goods and services to constantly think about maintaining their survival in the market and to design and plan to improve their position in the market and surpass the competitors or at least not fall behind their caravan. Economic logic dictates that survival and increase in market share will not be achieved, unless they have the highest possible production with minimum resources and minimum cost. Based on this, in this article, we will examine the issue of how to resolve the conflict of interests of state-owned companies in the field of competition law.

Of course, it should be noted that there are differences between corruption and conflict of interest. Corruption is the use of a public position and office for personal gain, while the conflict of interest is related to the performance of the legal duties of a public official, if the public official has personal interests or a conflict of interest occurs while performing a public duty. On this basis, it can be said that the conflict of interest is one of the important factors in aggravating many disorders at various administrative and executive levels and the cause of increasing corruption and inequality and weakening public trust and welfare and development indicators of the country, and therefore the management of conflict of interest It is identified as one of the priorities of institutional reforms with the aim of making the governance system more efficient.

The oldest system used by the government to regulate economic behavior and the most familiar to lawyers is command-oriented tools. This system requires the announcement and implementation of legal rules and regulations. One is from the government. Based on this, some behaviors are declared prohibited and For the violation of their prohibition, coercive executions are guaranteed. In this method, rights fulfill their oldest role, i.e. imposing and forcing the central rule. Such tools and mechanisms are often referred to as regulation through command and control. Regulatoryism and the idea of government intervention in the economy have led to the emergence of a word called "regulation" which has a similar meaning. Regulation applies both to the legal system of economic regulation and to legislative intervention in the market. It can be said that at this level, legislative intervention can be done with various goals. On the one hand, in the Anglo-American tradition, economic regulation is really aimed at eliminating the disadvantages of the market, and by stating these disadvantages, it invites the government to intervene in the free exchange mechanism. On the other hand, in the French tradition, the regulation of the economy aims to stabilize and determine the acceptable limits for the already existing government intervention in the free economic system. In this tradition, the regulation of the economy is more concerned. It has the reduction of baseless interventions in the market, to justify Such interventions

The government has many economic tasks at its disposal. On the one hand, it owns a large part of its consuming resources. Therefore, there is a feeling in the private sector that it is always a powerful competitor that The love of options and power is vast in front of him and You can compete with him in an unhealthy way. It should be noted that government interventions and guidance policies in the economy are contrary to the principle of non-discrimination - which is a requirement of free trade. Although the government's intervention and guiding policies in the economy during the crisis of the 1930s was able to bring the world economy out of the crisis, but its effectiveness was only effective in that specific era and the resolution of the crisis.

On this basis, some behaviors have been declared prohibited, and coercive measures are guaranteed for violating their prohibition. Another reason for opposing the government's involvement in the economy is that the government's involvement is one of the obstacles to development. Among the other reasons given by the opponents for the government's intervention in the economy is that the private sector is not only weakened, but also has no motivation to be present and active in the economy. It should be noted that government interventions and guidance policies in the economy are contrary to the principle of non-discrimination - which is a requirement of free trade. With the rise of maximum presence of governments in the field of economy and the promotion of the discourse of public good and under the banner of this theory, governments opened their hands in entering various fields including the economy in the form of the formation of a state company. Considering that regulation can provide the fields of activity of state-owned companies, deregulation in the form of removing or modifying regulations can create a balance between the presence of private and state-owned companies in the economy. The development of privatization in the light of deregulation is another thing that can help to resolve the conflict of interests in this process. On this basis, there is a view that by privatizing state companies, a major part of these problems can be solved. The conflict of interest between private and public companies is created when the government creates the ground for its activity and limits private companies by passing laws. This can lead to the resolution of conflicts of interest in the form of redefining the government in the form of optimal governance. Dealing with corruption and rent is another way to resolve conflict of interest.

 

 

 

Keywords
Subjects

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Volume 6, Issue 19
Sixth year, 19th issue, Summer 2024
Spring 2024
Pages 165-188

  • Receive Date 05 March 2023
  • Revise Date 28 June 2023
  • Accept Date 08 July 2023