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Symbioses between Green Marketing Sustainability and Competition Law in Malaysia


Article Information

Title: Symbioses between Green Marketing Sustainability and Competition Law in Malaysia

Authors: Angayar Kanni Ramaiah, Safinaz Mohd Hussein

Journal: Sustainable Business and Society in Emerging Economies (SBSEE)

HEC Recognition History
Category From To
Y 2024-10-01 2025-12-31
Y 2023-07-01 2024-09-30
Y 2021-07-01 2022-06-30

Publisher: Center for Sustainability Research and Consultancy Pakistan

Country: Pakistan

Year: 2022

Volume: 4

Issue: 4

Language: English

DOI: 10.26710/sbsee.v4i4.2525

Keywords: Green MarketingCompetition LawSustainable Environment procompetitive and Exemption

Categories

Abstract

Purpose: The urgency to control and reduce environmental disasters to the air and water as well as plastic pollution, acute deforestation, industrial waste, chemical spills, climate change and global warming calamity has triggered the universal Sustainable Development Goals (SDG) policy. Thus, diverting the attention of every level of human activity towards attaining a ‘sustainable’ environment. This universal war against such environmental disasters has developed a reason to incorporate SDG policy goals into the Competition Law and Policy (CLP) globally. This exploratory study aimed to determine the symbiosis between the competition law and United Nations (UN), SDG policy application under Competition Act 2010 for promoting and enhancing Green Marketing (GM) in Malaysia. 
Methodology: The study examines viable options for competition regulators to address sustainability policy for green marketing (GM) benefits under the scope of CLP. The study applies qualitative analysis by way of comparative study to the European Union (EU) approach to determine GM marketing legitimacy for acclaiming SDG policy as a criterion within the exemption proviso in the Competition Act 2010, Malaysia.
Findings: Competition Law can support GM sustainability initiatives to improve the environment since GM is not just about producing and marketing environmentally sustainable products but from a broader perspective contributes to innovation and consumer welfare.   Hence, GM's social market and societal benefits towards sustainability objectives are arguably considered to outweigh its countervailing anticompetitive effects for sustainable exemption policy under the CLP. However, GM can only substantially contribute to addressing global warming and the environment under the SDG if applied legitimately. In addition, the GM must be also endorsed to incorporate broader environmental-related benefit policy within its competition law prohibition and exemption framework to resonate with the UN’s SDG.
Implications/Originality/Value: The endorsement of GM sustainable benefits by way of exemption, exception or being pro-competitive allows a fair competitive advantage for GM industry growth. The research examines and proposes the exemption options for GM-related mergers, a collaboration by way of agreement and government exception policies under CA2010.


Research Objective

To determine the symbiosis between competition law and UN SDG policy application under the Competition Act 2010 for promoting and enhancing Green Marketing (GM) in Malaysia.


Methodology

Qualitative analysis using a comparative study of the European Union (EU) approach to determine GM marketing legitimacy for claiming SDG policy as a criterion within the exemption proviso in the Competition Act 2010, Malaysia.

Methodology Flowchart
                        graph TD;
    A["Identify urgency for environmental disaster reduction and SDG policy"] --> B["Examine viable options for competition regulators on sustainability policy for GM"];
    B --> C["Apply qualitative analysis via comparative study with EU approach"];
    C --> D["Determine GM marketing legitimacy for SDG policy under Competition Act 2010"];
    D --> E["Analyze findings on GM's contribution to innovation, consumer welfare, and environmental benefits"];
    E --> F["Propose exemption options for GM under CLP"];
    F --> G["Conclusion on symbiosis and policy implications"];                    

Discussion

The study explores the challenges of Green Marketing (GM) legitimacy, including the lack of standardized definitions, the prevalence of "greenwashing," and the higher costs associated with sustainable practices. It argues that competition law needs to adapt to incorporate environmental considerations, moving beyond a purely economic definition of consumer welfare. The research draws parallels with the EU's approach, suggesting that Malaysia can expand its Competition Act 2010 exemptions to include sustainability benefits.


Key Findings

Competition Law can support GM sustainability initiatives. GM contributes to innovation and consumer welfare, and its social and societal benefits for sustainability arguably outweigh anticompetitive effects for exemption. GM must be applied legitimately and endorsed to incorporate broader environmental benefits within competition law to align with UN's SDG.


Conclusion

The Sustainable Development Goals (SDG) policy necessitates Green Marketing (GM) to prosper, requiring a reconciliation of competition law with societal and environmental well-being. Key challenges include defining GM, quantifying environmental sustainability, and bridging the gap between competition law and environmental law. Competition authorities should give greater weight to sustainability and incorporate environmental effects into the assessment of anti-competitive harm. GM deserves fair treatment and necessary leeway for its survival and sustenance in the market.


Fact Check

* The study is published in "Sustainable Business and Society in Emerging Economies," Vol. 4, No 4, December 2022. (Confirmed by text)
* The Competition Act 2010 in Malaysia prohibits anti-competitive agreements under Section 4(1) and abuse of dominance under Section 10(1). (Confirmed by text)
* The European Union's approach to sustainability in competition law is discussed, referencing Article 101(3) of the Treaty on the Functioning of the European Union (TFEU). (Confirmed by text)


Mind Map

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