Market concentration enhances the power of multinational corporations to dictate their terms, compounding the difficulties of commodity-reliant developing countries.
There is at least circumstantial evidence to indicate that anti-competitive trade practices are on the increase related to market concentration and increased buyer power among the TNCs.
Given the situation, policy must play a role in ensuring that levels of market concentration in local and international markets need to be tackled to ensure that the MNCs cannot abuse their market power and extract unfair profits
National competition law in developing countries could play an important role in tackling some abuses of market power, especially by domestic intermediaries or domestic subsidiaries of MNCs.
However, this is not an easy task, unfortunately, because most developing countries lack the institutional and human capacity to enforce such a competition policy.