Competition and consumer protection

Competition Definition

• Free entry and exit from markets that stops domination by specific businesses.

Competition Act Objectives:

• Provide competitive prices/variety, promote employment, encourage global market participation, enable SMMEs, and increase business ownership for the previously disadvantaged.

Goals of Competition Policy

• Prevent monopolies from abusing power, regulate harmful mergers, and stop restrictive practices like price-fixing and market division

• Competition Act 89 of 1998 Primary Aim

Promote economic efficiency

• Enacted as Act 89 of 1998 to establish a competitive, fair economy, promote market efficiency, and broaden business ownership.

Prohibited Practices:

Forbids restrictive horizontal practices (price-fixing, market division, collusive tendering), restrictive vertical practices (minimum resale price maintenance), and abuse of dominant market positions.

Competition Commission

• Investigates restrictive practices, dominance, and mergers for equity and efficiency.

Competition tribunal

• Independent tribunal of record that grants exemptions, authorizes/prohibits large mergers, and adjudicates misconduct.

Competition Appeal Court

• High-court status court of record that reviews, amends, or confirms Tribunal orders.