COMPETITION LAW COMPETITION LAW Competition Act 89 of

COMPETITION LAW

COMPETITION LAW • Competition Act 89 of 1998

PURPOSE OF ACT • To promote the efficiency, adaptability and development of the economy; • To provide consumers with competitive prices and product choices; • To promote employment and advance the social and economic welfare of South Africans; • To expand opportunities for South African participation in world markets and recognize the role of foreign competition in the Republic; • To ensure that small and medium-sized enterprises have an equitable opportunity to participate in the economy; • To promote a greater spread of ownership, in particular to increase the ownership stakes of historically disadvantaged persons.

RESTRICTIVE PRACTICES • Any arrangement or business practice or method of trading, including the fixing of prices, which restricts competition directly or indirectly

TYPE OF RESTRICTIVE PRACTICE • Restrict production or distribution • Limiting production facilities • Price maintenance • Prevent technological improvements • Prevent / restrict market

RESTRICTIVE PRACTICES • • • Resale price maintenance Horizontal price collusion Horizontal collusion on conditions of supply Horizontal collusion on market sharing Collusive tendering

APPROVAL OF ACQUISITIONS • Approve mergers and acquisitions

MONOPOLIES • Prevent monolopistic control