The Application of Extraterritoriality Principle in ASEAN Economic Community Era: Challenge and Feasibility

Most of the ASEAN member states (AMSs) have their own competition law, with the exception of Cambodia. Competition is clearly an important aspect of ASEAN‟s vision of regional economic integration. Competition law ensures that all entities do their business activities in every country of AMSs. Every undertaking shall not harm the competition, but in fact, an undertaking could harm the competition in the domestic market through cross-border anticompetitive practices. The question is whether cross-border anticompetitive practices occur in the ASEAN region and whether national competition law can be applied to foreign companies with domiciles abroad. There is no ASEAN regulation about this issue because there is no specific law that regulates cross-border anticompetitive practices. In the AEC era, there is a possibility of cross-border anticompetitive practices. This article discusses and elaborates on the challenge and feasibility of the application of extraterritorial jurisdiction in the ASEAN region and how it should be applied by national competition authorities in the ASEAN region