The crucial reform of the regulation on freedom of costs and competitors and that of client safety in Morocco, a serious present problem

Par El Mostapha BAHRI, Advisor Economist

As acknowledged in two earlier articles[1]Morocco has a authorized arsenal on freedom of costs and competitors and on the Competitors Council that matches the ambitions of a liberal economic system and is on the similar commonplace because the authorized texts obtainable to sure superior nations, comparable to France, for instance.

Nonetheless, monitoring the applying of the provisions of the regulation on freedom of costs and competitors has revealed that sure articles have by no means been utilized for the reason that promulgation of the primary model of the regulation in 2000. Equally, sure articles of the regulation on client safety have confirmed tough to use.

Concerning the regulation on freedom of costs and competitors, articles 3 and 4 of the regulation on freedom of costs and competitors which seem within the textual content have by no means been carried out, regardless of the value will increase recorded since 2022. Furthermore, in an article revealed in 2022, within the columns of La Nouvelle Tribune^[2]it was proposed as a short-term motion “Examine the chance to implement the provisions, regarding the sectors or geographical areas the place value competitors is proscribed… (article 3) and … momentary measures towards will increase… are taken by the administration, after session with the Competitors Council (article 4)”.

It must be recalled on this context that Moroccan regulation definitely enshrines the precept of value freedom. However, it has put in place safeguards, with out which value freedom can be inconceivable. And it’s as much as the Administration in control of this coverage to implement them, on the applicable time, with a view to protect the buying energy of customers and keep away from anger and discontent among the many inhabitants.

What are these safeguards?

Article 2 states: “Besides the place the regulation supplies in any other case, the costs of products, services are freely decided by competitors, topic to the provisions of Articles 3, 4…………….”

Article 4: “The provisions of Articles 2 and three above don’t forestall momentary measures towards extreme value will increase and/or decreases, motivated by distinctive circumstances, a public calamity or a manifestly irregular market scenario in a given sector, from being taken by the administration, after session with the Competitors Council. The period of software of those measures could not exceed six (6) months, extendable solely as soon as by the administration.

A easy query is value asking.

May the conditions of value will increase recorded since 2022, on the nationwide stage and extra significantly on the stage of sure geographical areas of the nation (outlying provinces) not be thought-about as irregular conditions?

Why did the federal government not declare distinctive circumstances and implement these measures to ease the strain on costs and consequently client anger?

Regardless of these calls and reminders, the Administration by no means reacted, letting costs fluctuate beneath the pretext of value freedom. Fortuitously, a giant step was taken as a result of on July 8, 2024, the parliamentary group of the Get together of Progress and Socialism (PPS) introduced a invoice to amend and complement Articles 3 and 4 of Regulation No. 104-12 on value freedom and competitors[4].

In response to the explanatory memorandum of the proposed regulation, quoted by Hespress[5]the Costs Act, though it stipulates that the costs of products, services are decided by competitors, nonetheless permits the federal government to deviate from this rule by intervening via a regulatory textual content, after session with the Competitors Council, to find out an inventory of products, services whose costs have to be managed and controlled.

To implement these provisions, “the group proposed that Article 3 of the stated regulation be amended to emphasise the weather of obligation, urgency and importation, in order that the article takes the next type: “With regard to sectors or geographical areas the place value competitors is proscribed, both attributable to authorized monopolies, or attributable to State assist for sure sectors or merchandise throughout advertising or importation, or attributable to momentary or everlasting provide difficulties, or attributable to regulatory or legislative provisions, costs are set by the administration after session with the Competitors Council.”

The identical supply confused the ” have to affiliate any monetary, fiscal or customs help from the State for the manufacturing or importation of or service with a regulatory measure fixing and regulating the value of the backed product for consumption, after session with the Competitors Council. »

As regards Article 4, the identical parliamentary group proposed to “prolong the applying of administrative measures for intervals similar to the period of the causes which led to the rise or lower in these costs”whereas the unique textual content of the article offered for an extension of solely six months.

These proposed amendments, which we very a lot hope might be profitable and revealed as rapidly as potential within the official bulletin, will oblige the Administration to implement them.

As for the Shopper Safety Act, the provisions regarding the show of costs haven’t produced the anticipated outcomes and a number of other actions don’t care a lot in regards to the show of costs and don’t really feel involved by the provisions of the Act regarding this side.[6].

The consequence is that there’s a dualism within the software of the regulation. Some companies show costs out of obligation and respect for the regulation; whereas different sellers ignore the regulation, or don’t really feel involved by the duty to show.[7].

It stays to be famous that this provision is tough to use for sure actions. This issues the show of costs at sure forms of companies for which compliance with this obligation was very tough, such because the gross sales of sure agricultural merchandise, typically of very low worth, by farmers (small portions of eggs, chickens, rabbits and agricultural merchandise, comparable to mint, parsley, celery, whey, bread, and so on.) or on the livestock market. A mirrored image on this side have to be initiated to make the regulation relevant and which takes into consideration the specificity of all forms of enterprise. It’s inconceivable to place provisions in a regulation and show inapplicable. Because of this the issue of displaying costs will at all times be acute in sure financial actions, even if the high-quality for non-display has been revised upwards to 2 thousand dirhams at the least and 5 thousand dirhams as a most.

Regardless of the seriousness of the monetary penalty, it’s the case that the process is lengthy between the remark of the offence and the choice on the penalty, as a result of the report have to be processed by the courtroom. The processing of PVs by the courts takes extra time, in comparison with administrative sanctions, as prior to now.

At this stage, there’s work to be achieved in depth each by client associations (in the event that they determine to prioritise this side of the regulation) and by the administrations answerable for making use of the regulation, and even by a parliamentary group as was achieved for articles 3 and 4 of the regulation on costs and competitors.

[1] The New Tribune, Digital model of 12/20/2023 and The New Tribune 12/27/2023.

[2] Value enhance in Morocco, can it’s managed? La Nouvelle Tribune of June 30, 2022.

[3] Market regulation, an actual problem for the federal government. La Nouvelle Tribune of March 2, 2023.

[4] from July 8, 2024.

[5] Idem.

[6] « Value show: between the refusal of sure suppliers and the shortcoming of the administration to implement the regulation”. La Nouvelle Tribune of 04/26/2021.

[7] Idem.