Tag: Competition Commission

In an emerging economy like South Africa, human capital development is central to the survival and growth of the economy. The economic system that is conducted in South Africa is a market driven capitalistic one, whose focus is on maintaining a sound financial system that is globally competitive.

The paper details competition and regulatory issues in the South African digital economy and sets out the Commission's intended strategic actions in relation to competition law issues, and proposed strategic actions for other regulators to consider concerning their respective regulatory areas, namely telecommunication and broadcasting, data protection and financial services regulators.

A number of fundamental changes to the Competition Act demonstrate government's strengthened policy commitment to drive radical economic transformation in South Africa and are likely to be more regularly used in the midst of COVID-19.

On 18 May 2020, the Competition Commission published its final Buyer Power Guidelines (the guidelines). Earlier this year, the new buyer power provisions of the Competition Act 89 of 1998 (the Act) came into effect. These provisions prohibit dominant buyers in designated sectors from imposing unfair prices or trading conditions on small and medium enterprises (SMEs) and firms owned and controlled by historically disadvantaged persons (HDP).

As the market continues to digest the Competition Commission’s summary findings on the data services market in South Africa, some experts believe that their methodology in coming up with the findings was not necessarily the right approach. The South African mobile industry cannot be compared to those in other African countries.

Amendments to the Competition Act were published in the Government Gazette in February 2019. These are, however, not yet in force pending the publication of a date to be proclaimed by the President. Some of the more prominent changes to the Act are as follows.

When faced with legislation that requires parties to take certain steps or prevents them from implementing a particular course of action, the questions often asked include 'what are the consequences and who will be liable to pay?' For a long time been uncertainty about the penalty firms would face if they fail to notify a merger and/or implement a merger without the requisite approval of the competition authorities.

The South African Competition Commission has established a reputation for relentlessly pursuing its cartel enforcement objectives. Over the past three years, the Commission has raided over 70 companies and conducted hundreds of cartel investigations. It is imperative for businesses to ensure that they are prepared for a dawn raid.

Few market inquiries have captured the attention of South African consumers more than the inquiry into the high costs of data in South Africa. Businesses and consumers will be waiting in anticipation for the outcome of the Commission's inquiry into data costs, which is expected to be finalised in August 2018.

The Competition Commission of South Africa is becoming increasingly concerned with the coordinated effects in mergers. Worldwide, there is increased concern by competition authorities that...