Calls to fast-track competition bill

THE ANC wants Parliament to fast-track the consideration of the bill aimed at clamping down on anti-competitive behaviour by companies and imposing stiffer fines against those involved in price fixing.

Economic Development Minister Ebrahim Patel introduced the Competition Amendment Bill in Parliament last month.

“The main objective of these amendments is to address two persistent structural constraints on the South African economy, namely, the high levels of economic concentration on the economy and skewed ownership profile of the economy,” reads the bill.

The bill comes against the backdrop of the ANC 54th conference resolution which noted that the high level of concentration of ownership in many sectors of the economy was dysfunctional to growth, and impeded entry of black South Africans in the economy and effective competition.

Yesterday, ANC spokesperson Pule Mabe said they welcomed the introduction of the Competition Amendment Bill by Patel.

“We call on Parliament to fast-track consideration of the bill as the country urgently needs bold economic transformation,” Mabe said.

“We note that the bill has been through a thorough process of consultation with business and organised labour.

“We call on the social partners to work closely to begin implementation of the core elements and to join us in opening the economy to small and medium businesses,” he added.

The bill seeks to clarify provisions in the existing law on prohibited practices, abuse of dominance and discrimination, and mergers.

One of the provisions requires a “dominant firm to show that its action of price differentiation does not impede the participation of small and medium businesses and firms owned or controlled by historically disadvantaged persons”.

Merger

The bill also empowers the commission to revoke the approval of an intermediate merger.

The president will now be empowered to constitute a committee of ministers to intervene in mergers where the acquiring firm was foreign and involved matters of national security.

The bill also provides for market enquiries in sectors where ownership and market share have become highly concentrated.

The bill also increases the maximum administrative penalty to 25% of a firm’s annual turnover if it is found to repeat conduct previously ruled as being a prohibited practice.