Competition Commission in South Africa: What is their role?
The Competition Commission is a South African statutory body and the country’s anti-trust regulator. It is empowered by the Competition Act to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers. This, in turn, achieves equity and efficiency in the South African economy.
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In South Africa, the commission negotiates agreements with any regulatory authority to coordinate and harmonise the exercise of jurisdiction over competition matters within the relevant industry or sector.
In addition, it is responsible for blocking mergers and other transactions that would reduce competition.
What are the role of the Competition Commission in South Africa?
Headquartered in Sunnyside, Pretoria, this commission regulates competition between firms in the market. Here are some of its other functions:
- This body implements measures to increase market transparency
- It conducts formal inquiries concerning the general state of competitiveness in a market
- The government agency promotes a greater spread of ownership, in particular, to increase the ownership stakes of historically disadvantaged persons
- It promotes employment and advances the social and economic welfare of South Africans
Who is the South African Competition Commissioner?
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In 2022, the Minister of Trade, Industry and Competition, Mr Ebrahim Patel, appointed Ms Doris Tshepe as the new Competition Commissioner.
She holds an LLB and LLM degree in Tax Law. Doris previously served as the Managing Director at Cheadle Thompson and Haysom Inc. and is a Judicial Services Commission (JSC) member.
Which Act regulates competition in South Africa?
In South Africa, competition is governed by the Competition Act No. 89 of 1998. This independent body reports to the Department of Economic Development.
What are the institutions that promote competition in South Africa?
The Competition Act sets up three institutions to be directly involved in its application. Each of these institutions, The Competition Commission, the Commission Appeal Court (CAC) and the Competition Tribunal, is independent of the government to slightly different degrees. The CAC hears appeals against decisions of the Tribunal.
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What types of conduct does the Competition Commission regulate?
This government agency is responsible for evaluating alleged anti-competitive conduct. Below are some of the conducts the body regulates:
- Market division: This is an agreement between different parties to divide up the market or territories to reduce competition
- Collective tendering: This occurs when contenders manipulate the outcome of the bid process, such as agreeing on prices
- Mergers and acquisitions: These transactions may substantially prevent or lessen competition in a specific market.
- Price fixing: This is an agreement between opponents to fix the prices of goods or services at a high price
- Abuse of dominance: This happens when a dominant firm in a market abuses its position by engaging in conduct that harms competition, including refusing to supply a rival
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- Bid Rigging: This is an agreement between different parties to coordinate their bids on a tender or contract to manipulate the outcome in their favour
The Competition Commission is a statutory body constituted by the Competition Act No. 89 of 1998 to investigate and control business practices. It ensures the consistent application of the principles of the Act.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions. Any action you take upon the information presented in this article is strictly at your own risk and responsibility.
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