Competition act 1998 financial definition of competition act 1998. The competition act 89 of 1998 western cape government. Special attention will also be given to remedies in respect of statutory competition law. 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. Competition amendment act 18 of 2018 english afrikaans. The act is enforced and administered by the competition bureau, and cases are adjudicated by the competition tribunal. Providing consumers with competitive prices and product choices. The competition act as seen from a business perspective. Competition act 89 of 1998 south african government. Competition act 89 of 1998, consolidated with amendments enacted by act 35 of 1999, the purpose of the competition act is to promote and maintain competition in south africa. The promotion of the efficiency, adaptability and development of the economy.
Competition act 89 of 1998, consolidated with amendments. The act prohibits agreements which are intended to or have the effect of, preventing, restricting or distorting competition in the uk. The competition amendment bill, if approved, will amend the competition act 89 of 1998 the act. To provide for the establishment of a competition commission responsible for the investigation, control and evaluation of restrictive practices, abuse of dominant position, and mergers. The competition act, 89 of 1998 the competition act applies to all mergers or acquisitions taking place in south africa. An act to provide, keeping in view of the economic development of the country, for the establishment of a commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in india, and for matters. The following rules form part of the competition act, no 89, of 1998 act and set out the practical procedures that should be followed. Notice in terms of section 1 of the competition act, 1998 act no. The recent finding of the competition commission that car firms are employing anticompetitive practices, including price fixing, has again highlighted the fact that contravention of the competition act no.
Competition act no 89 of 1998 norcaz training academy for. The reason seems to be that the previously protected monopolies who were allowed to continue with business without fear of retribution, have now been stopped in their. The tax deductibility of interest on money borrowed to pay. Cartel conduct is prohibited in terms of section 4 of the competition act, 89 of 1998 the act. An act to provide, keeping in view of the economic development of the country, for the establishment of a commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests. The application of certain provisions of the competition act. Regulating the functions of the competition appeal court. Introduction to corporate law, mergers and acquisitions 2.
Competition act 89 of 1998, consolidated with amendments enacted by act 35 of 1999, the purpose of the competition act is to promote and maintain comp. These include, but are not limited to, how to file with the competition tribunal, how the act is applied and the types of cases which are considered. Scope of application of act 1 the scope of application of this act is the safeguarding of competition in the interest of free enterprise upon the extraction of natural resources, manufacture of goods, provision of services and sale and purchase of products and services hereinafter goods and the preclusion and elimination of the prevention. This is the second iteration of the bill the first was released in december 2017.
South african petroleum industry association granted conditional exemption. 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. It has the power to disallow small and intermediate mergers, and makes recommendations on larger mergers to the competition tribunal. The act also covers situations where there is no actual agreement, but where the actions of trade associations. Public interest considerations under the competition act no. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Competition amendment act 1 of 2009 south african government. Competition act 1998 a uk act which consolidated existing competition laws but which also contained new prohibitions, powers of investigation and penalties for infringements of the act. Anticompetitive behaviour often forces the smaller player off the market, thereby allowing the bigger player to dictate. Cliffe dekker hofmeyr tribunal provides clarity on. The act also covers situations where there is no actual agreement, but where the actions of trade associations or companies acting together have the same effect. Public interest considerations under the competition act. 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.
To provide for the establishment of a competition commission responsible for the. This course will cover the following aspects of competition law and the competition act 89 of 1998. The recent enactment of the competition act 89 of 1998, has resulted in a world of speculation and discussion. An act to make provision about competition and the abuse of a dominant position in the market. In november 2014, the competition tribunal dismissed a point in limine raised by linpac plastics south africa proprietary limited linpac, against a referral filed by the western cape high court at the instance of mr jacobus du plessis and others mr du plessis in terms of s652b of the competition act, no 89 of 1998 act court referral. The protected disclosures act 26 of 2000, the companies act. The main objective of the amendments is to address two persistent structural constraints on the south african economy, namely, the high levels of economic concentration in the economy and the skewed ownership profile of the economy.
The act contains both criminal and civil provisions aimed at preventing anticompetitive practices in the marketplace. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. Cartel conduct is prohibited in terms of section 4 of the. Regulations on competition tribunal rules for covid19 excessive pricing complaint referrals. Broad based black economic empowerment act, act 53 of 2003. The act is designed to bring uk competition law into line with european union competition law as currently enshrined in articles 85 and 86 of the treaty of rome. Interconnected bodies any two bodies corporate are to be treated as interconnected if one of them is. Competition amendment bill introduced in parliament the minister of economic development has introduced the competition amendment bill b 232018 into parliament. Competition act 1998 financial definition of competition. A practical guide to the south african competition act. The competition act 1998 is the current major source of competition law in the united kingdom, along with the enterprise act 2002. Section 591 of the competition act, 89 of 1998 authorises the competition tribunal to impose administrative penalties on firms who have committed prohibited forms of anticompetitive conduct, for example a penalty of r45 million was imposed on south african airways pty ltd for abuse of dominance and a penalty of r98 784 869. The protected disclosures act 26 of 2000, the companies. S 18 amended by competition amendment act 1 of 2009 from date to be.
Mergers of a particular size in terms of the merging parties assets or turnover in south africa are investigated by the competition commission and must be approved by the competition authorities before they are implemented. The competition commission is responsible for investigating and evaluating mergers and prohibited practices. The purpose of the competition act is to promote and maintain competition in south africa. The south african competition regime and the related institutions the competition commission, competition tribunal and competition appeals court, created in terms of the competition act number 89 of 1998 3 have been successful in creating a more competitive economy during the past two decades. While the act does not expressly refer to cartels, section 4 prohibits certain conduct by firms or associations of firms in a horizontal relationship. Competition act and regulations 891998 data dynamics. Commencement of section 12 of the competition amendment act, 2009 act no. One of the main purposes of this act was to harmonise the uk with eu. Interpretation in these regulations, unless the context indicates otherwise, any word or expression has the meaning assigned to it by the competition act, 1998 act no. The competition act 89 of 1998 the purpose of this act is to promote and maintain competition in the republic by. Competition act no 89 of 1998 norcaz training academy. With acts you are guaranteed the latest and most up to date resource for your legislative needs.
To provide for the establishment of a competition commission responsible for the investigation, control and evaluation of restrictive practices, abuse of dominant position, and. The competition act is a canadian federal law governing competition law in canada. An act to provide, keeping in view of the economic development of the country, for the establishment of a commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in india. The competition act 89 of 1998 the purpose of this act is to promote and maintain competition in the republic by the promotion of the efficiency, adaptability and development of the economy. Apr 08, 2020 commencement of section 12 of the competition amendment act, 2009 act no. We provide all south africans equal opportunity to participate fairly in the national economy. Cliffe dekker hofmeyr competition amendment bill introduced. Competition act updated to 12 july 2019 act 89 of 1998 notice 92, g.
The application of certain provisions of the competition. Amended by competition amendment act 18 of 2018 amended by competition amendment act 18 of 2018 from date to be proclaimed amended by financial markets act 19 of 2012 from 3 jun 20. The act provides an updated framework for identifying and dealing with restrictive business practices and abuse of a dominant market position. I, ebrahim patel, minister of economic development, hereby publish in terms of section 214 of the competition act, 1998 act no. Act to provide for the establishment of a competition commission responsible for the investigation, control and evaluation of restrictive practices, abuse of dominant position, and mergers. Compensation for occupational injuries and diseases act, act of 1993. The application of certain provisions of the competition act 89 of 1998, as amended, to franchise agreements 1.