Providing consumers with competitive prices and product choices. The competition act affects every business operating in south africa, and the serious consequences of contravention necessitate a sound understanding of its basic principles and access to the best possible legal advice. This report will specifically consider the impact of the new competition legislation on the structure of the food sector in south africa. Proposed changes to the competition act radical and far. Competition amendment act 1 of 2009 south african government.
Section 656b of the competition act states that a party seeking to pursue an action for damages requires a certificate from the chairperson of the competition tribunal or the president of the competition appeal court certifying that the conduct forming the basis of the damages claim has been found to be a prohibited practice in terms of the. This act has been updated to government gazette 40057 dated 9 june, 2016. Now under the authorship of sutherland and kemp, competition law of south africa also includes complete commentary and is an invaluable asset to practitioners. South african competition law home brand south africa. The competition commission south african competition. The overarching theme of the amendment act is the enhancement of the degree of public interest. In south africa competition law is regulated by the act. Report on the objectives of uc laws, assessment of dominance. Role of competition law in a democracy the competition law. Twenty years of competition policy in a democratic sa. In keeping with the spirit and success of the first edition, the second edition of a practical guide to the south african competition act aims to demystify the application of competition law in the south african context. The south african competition act contains an unusual rulesbased approach. Flying into new heights damages claims arising from. The promotion of the efficiency, adaptability and development of the economy.
The previously existing legal regime failed to address the needs of south africa in at least four respects. Communication doc to icasa, are in line with the spirit and object of the competition act9, thus ensuring that radio frequency spectrum is allocated efficiently in south africa. South africa, officially the republic of south africa rsa, is the southernmost country in africa. The act regulates mergers and anticompetitive conduct which it refers to as prohibited practices. Pdf with the coming into force of the competition act 2010 and creation of its two key enforcement. Amended by competition amendment act 1 of 2009 from date to be proclaimed. South africas competition act was adopted in 1998 to remedy inherited competition laws that were too weak and not tailored to meet the circumstances of the new south africa. The amendments to the competition act, 1998, which introduce criminal liability for cartel conduct, came into effect on 1 may 2016. Both of these acts have quite a lot in common and both are here for the benefit of the consumer andor client. The competition commission is a statutory body constituted in terms of the competition act, no 89 of 1998 by the government of south africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the south african economy. The competition commission south africa home facebook. The competition commission is responsible for investigating and evaluating mergers and prohibited practices. Competition act 89 of 1998 south african government.
Indeed, the big story about the south african competition act and the institutions that. South africas competition legislation has far reaching implications for local and foreign businesses. He added that the tribunal is afforded latitude to adopt any procedure for its. Competition law is a critical part of the business landscape in south africa and informs both corporate and commercial strategy. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. South africas exclusionary abuse of dominance provisions. Our competition practice is at the forefront of developments in competition law in south africa.
South africa has a developed and regulated competition regime based on best international practice. Under legislation that was effective from 1923 to 1944, the. A practical guide to the south african competition act. Accordingly, transactions between parties in a foreign jurisdiction, which has an e. The effect of these two structural features of these markets is to stunt economic growth, prevent entry of new players, reduce consumer choice, limit the levels of innovation and dynamism in the economy, and feed a growing resentment among black south africans of the failure to realise the promises made by the competition act. We provide all south africans equal opportunity to participate fairly in the national economy. Telecommunication and the allocation of scarce resources. Sold and distributed in north, central and south america by. In south africa, since at least 2014, both competition commissioner tembinkosi bonakele and minister patel have been engaging in discussions on how and when to implement the act to ensure that the necessary institutional capacity is available to apply the criminal amendments. Some particular competitive situations were addressed in specific laws beginning as early as 1907. If you are promoter of promotional competitions in south africa or market promotional competitions, you need to comply with the consumer protection act. Competition and antitrust law news in south africa golegal. In this article, the writer reflects on the competition act, no.
Justice jafta spoke about the competition act 89 of 1998 the act, focusing on its. Abuse of dominant position in south african competition law. Competition amendment act 18 of 2018 english afrikaans. Experts in competition law requirements in south africa. The recentlypublished competition amendment bill holds farreaching implications for south african businesses, given the expanded powers proposed to enable the competition authorities to. On behalf of the south african government i extend my thanks to all the staff of the. Pdf rationales for the implementation of competition law in eu. S, 21, 4950, 5859, 7374, 82 amended by cooperative banks act 40 of 2007 from 1 aug 2008. Competition policy for shared prosperity and inclusive growth. It applies to all economic activity within, or having an e. Mergers which exceed the prescribed thresholds have to be approved of by the competition commission or tribunal before implementation. The competition act south africa has recently introduced two acts which came into effect on the 1st april 2011, the consumer act and the competition act.
To provide consumers with competitive prices and product choices. Icasa in terms of the electronic communications act, act no 36 of 2005 eca and on the national energy regulator of south africa nersa in terms of the gas act, act no 48 of 2001 gas act and the regulators recent exercise of these powers to regulate prices in the mobile telecommunications and piped gas industries. The competition act of 1998 and the institutions established under it in 1999 were. The development of competition law and economics in south africa, hsrc press. J241002 in the competition appeal court of south africa. The effect of the first transaction is an increase in vodafones shareholding in vodacom from 35% to 50%. Unlike most developing countries, south africas history and development of economic policy is. This was the first such remedy in south africa and flowed in part from the strong. Ten years of enforcement by sa competition authorities the.
With over 58 million people, it is the worlds 24thmost populous nation and covers an area of 1,221,037 kilometres 758,717 mi. A practical guide to the south african competition act is a compendium of all the most frequently asked questions about the act and the economics that underpin it, with lucid and helpful answers. This book is best described in the words of the chairperson of the south african competition tribunal, norman manoim. The competition act recognizes this by providing for an unusually elaborate set of efficiency defences. The purpose of the competition act of 1998 is to promote and maintain competition in south africa to achieve the following objectives. That apartheid and other discriminatory laws and practices of the past resulted in excessive concentrations of. Others focus on the us antitrust law or eu competition law only. Our competition practice is at the forefront of developments in. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. The government of south africa the competition act 89 of 1998 the purpose of this act is to promote and maintain competition in the republic by.
The competition amendment act the amendment act was signed into law by president cyril ramaphosa on february 2019. In this comment, we briefly outline prohibitions contained in the competition act of south africa. The competition act 89 of 1998 prohibits abuse of its dominance by a firm that is dominant within a specific market. The competition act of 1998 fundamentally reformed the countrys competition legislation. To promote the efficiency, adaptability and development of the economy. The composition of competition policy is complex it consists of, amongst other things, economic objectives, certain legislative instruments and the economic environments, and even the political environment. Since the first edition, there have been a number of important changes to the law, the approach of the authorities to the economic analysis of cases. With acts you are guaranteed the latest and most up to date resource for your legislative needs. Impact on your business international trends south african trends overview of sa legislation and interesting recent cases prohibited practices upcoming amendments to the competition act mergers. Cartel activity is conduct which constitutes pricefixing, market division or collusive tendering between competitors, all of which are strictly prohibited by the competition act.
The concept of an essential facility is problematic in south african competition law and this dissertation probes into the characteristics of such a facility and the requirements of proving a contravention of section 8. The act has fundamentally reformed south africas competition regulation regime and has created new competition authorities with significant powers. To provide for the establishment of a competition commission responsible for the investigation, control and evaluation of restrictive practices, abuse of dominant position, and. Pdf kenyas new competition policy regime researchgate. The amendment act introduces extensive changes to the south african competition law landscape. Overview ccred a leading university research group. The competition act 89 of 1998 western cape government. South africa has never lacked for firms that have dominated the domestic market, but these firms have, for the most part, been markedly unsuccessful in penetrating international markets. South africas economic system is predominantly based on free market principles. Replacing section 8d of the south african competition act with an.