Competition Regulators across Africa are increasingly investigating and prosecuting companies involved in contraventions of competition legislation. Compliance with the various regulatory regimes can be challenging but can be managed. Here are six things to know about recent Competition Law enforcement in Africa: 1. Tanzania: Even less than 10% shareholding acquisition could trigger merger notification On … Continue reading
This blog was co-authored by Julia Sham-Guild and James Donald The Covid-19 pandemic has forced many industries to become highly reliant on digital markets. The gradual move over the past few decades and this recent sharp uptake as a result of Covid-19 has resulted in an increased need for regulators to be able to monitor … Continue reading
There have been a number of important developments in competition law across Africa over the past few years. An increasing number of African countries have implemented merger notification regimes. Firms that wish to acquire businesses or expand their operations in Africa should be mindful that their transactions may require approval from regulator/s in the country/ies … Continue reading
The High Court in England has ruled that it can order companies accused of breaking competition rules to require employees to disclose work-related communications stored on personal electronic devices. The court was dealing with a disclosure and inspection dispute in relation to a competition damages claim filed by a mobile phone retailer. Phones 4U’s insolvency … Continue reading
The Competition Act was amended in February 2020 to introduce new rules to protect small, medium and black-owned suppliers in specific sectors (the buyer power provisions). These include the e-commerce and online services sectors (the gig economy). On 18 May 2020 the Competition Commission issued its guidelines on the buyer power provisions. These guidelines set … Continue reading
As South African businesses suffer the impact of the COVID-19 pandemic and national lockdown, small businesses can apply for debt relief from most of the major South African banks and several state programmes. The Department of Small Business has announced multiple interventions to assist small businesses. In addition to tax subsidies and incentives for compliant … Continue reading
In March 2019, the Competition Commission published its latest guidelines for the determination of administrative penalties for failure to notify mergers and implementation of mergers contrary to the Competition Act 1998. The highest penalty to date for a failure to notify is R10 million. The methodology in the Guidelines could result in much higher figures … Continue reading
The Supreme Court of Appeal restated the principles on liability for unlawful competition by the use of the trade secrets of a competitor. Every person is entitled to freely carry on their trade or business in competition with rivals but the competition must remain within lawful bounds. If it involves a wrongful interference with another’s … Continue reading
The Competition Amendment Act was signed into law on 13 February 2019. The Act’s aim is to ‘open up new opportunities for many South Africans to enter various sectors of the economy and compete on an equal footing’. This sentiment is the spirit throughout the Act and the draft regulations that are undergoing an extensive … Continue reading
The Competition Amendment Bill proposes giving the Competition Commission broader powers, with more substantial remedies and the threshold for initiating a market inquiry has been lowered. Key changes include the expansion of the scope of market inquiries, the provision of a notification and consultation process with sector regulators and the granting of substantial powers to … Continue reading
On 1 August 2018, the Competition Commission called for final comments on its far-reaching Code of Conduct for Competition in the Automotive Industry. The code will materially impact a range of stakeholders, including motor insurers. This consultation is the last opportunity for stakeholders to comment before they decide whether or not to sign up to … Continue reading
The Competition Amendment Bill of 2018 introduces harsher penalty provisions which increase the enforcement powers of the competition authorities for purposes of deterring anti-competitive conduct. Removal of the ‘yellow card’ Currently, the Competition Act only allows for administrative penalties to be imposed in relation to certain prohibited practices if the conduct has been repeated by … Continue reading
A controversial introduction in the latest draft of the Competition Amendment Bill of 2018 is the inclusion of a section that requires the State President to constitute a standing committee of cabinet ministers and public officials to consider whether a merger, involving a foreign acquiring firm, will be adverse to national security interests in the … Continue reading
The overriding intention of the Competition Amendment Bill of 2018, introduced in parliament on 12 July 2018, is to address perceived high levels of concentration and the skewed ownership profile of the South African economy. The competition authorities have consistently expressed concerns about the large number of dominant firms operating in the economy which they … Continue reading
The August 2016 first-of-its-kind judgment against South African Airways in favour of Nationwide Airlines, for damages arising from conduct that was held to be an anti-competitive exclusionary act preventing Nationwide from entering into or expanding within the travel market, raises the interesting question whether the loss is insurable by the company and the directors. SAA … Continue reading
The high court award of R104 million payable by South African Airways to Nationwide Airlines is the first case to confirm that the Competition Act has created a new form of delictual liability for anyone that uses its dominant position in a market to impede or prevent a competing firm from entering into or expanding within … Continue reading
A consultancy firm has been found liable and fined €348 000 under EU competition law for facilitating a cartel, although it was not a member of that cartel, and it did not operate in the heat stabiliser market in which the cartel operated. AC‑Treuhand, a consultancy based in Zurich, offers a range of services including business … Continue reading
The Competition Tribunal in RCS Cards (Pty) Limited v The Consumer Finance Business of the JD Group Limited has affirmed that a restraint of trade clause contained in a sale of business agreement will not necessarily be considered anti-competitive. However, the restraint has to be justifiable in the circumstances and concluded for a reasonable period … Continue reading
In early June 2015 the Competition Authority of Kenya fined the Association of Kenya Reinsurers about R91 000 for setting minimum premium rates for insurance companies tendering to provide group life cover to the National Intelligence Service employees. The fixing of minimum premium rates have been going on for years in Kenya. The reinsurers claim these … Continue reading