REPUBLIC OF SOUTH AFRICA - CompCom SA

1 REPUBLIC OF SOUTH AFRICA_____COMPETITION ACT(Date of commencement of sections 1-3, 6,11, 19-43,78,79 & 84 on 30 November 1998. The remaining sectionsof the Act commenced on 1 September 1999)_____as amended byCompetition Amendment Act, No 35 of 1999(Date of commencement 1 September 1999)Competition Amendment Act, No. 15 of 2000(Date of commencement 1 September 2000)Competition Second Amendment Act, No. 39 of 2000(Date of commencement 1 February 2001)_____1 ACTTo provide for the establishment of a CompetitionCommission responsible for the investigation, control and eval-uation of restrictive practices, abuse of dominant position, andmergers; and for the establishment of a Competition Tribunalresponsible to adjudicate such matters; and for the establish-ment of a Competition Appeal Court.

2 And for related people of SOUTH AFRICA recognise:That apartheid and other discriminatory laws and practices of thepast resulted in excessive concentrations of ownership and controlwithin the national economy, inadequate restraints against anti-competitive trade practices, and unjust restrictions on full and freeparticipation in the economy by all SOUTH paragraph was amended to its present form by section 22 of TheCompetition Second Amendment Act, the economy must be open to greater ownership by agreater number of SOUTH credible competition law, and effective structures toadminister that law, are necessary for an efficient functioning an efficient.

3 Competitive economic environment, balanc-ing the interests of workers, owners and consumers and focussedon development, will benefit all SOUTH ORDER TO provide all SOUTH Africans equal opportunity to participate fairly inthe national economy; achieve a more effective and efficient economy in SOUTH AFRICA ;provide for markets in which consumers have access to, and canfreely select, the quality and variety of goods and servicestheydesire;create greater capability and an environment for SOUTH Africans tocompete effectively in international markets;restrain particular trade practices which undermine a competitiveeconomy;regulate the transfer of economic ownership in keeping with thepublic interest; establish independent institutions to monitor economic compe-tition; andgive effect to the international law obligations of the IT THEREFORE ENACTED BY THE PARLIAMENT OF THEREPUBLIC OF SOUTH AFRICA , AS FOLLOWS:34 TABLE OF CONTENTSCHAPTER 1.

4 9 DEFINITIONS, INTERPRETATION, PURPOSE ANDAPPLICATION OF ACT ..91. Definitions and interpretation ..92. Purpose of Act ..143. Application of Act ..15 CHAPTER 2 ..17 PROHIBITED PRACTICES ..17 Part A Restrictive practices ..174. Restrictive horizontal practices prohibited ..175. Restrictive vertical practices prohibited ..19 Part B Abuse of a dominant position ..196. Restricted application of Part .. 197. Dominant firms ..208. Abuse of dominance prohibited ..219. Price discrimination by dominant firm prohibited ..21 Part C Exemptions from application of chapter ..2310. Exemption .. 23 CHAPTER 3 ..27 MERGER 2711. Thresholds and categories of mergers.

5 2712. Merger defined ..2812A. Consideration of Mergers ..2913. Small merger notification and implementation ..3113A. Notification and implementation of other mergers ..3313B. Merger investigations ..3414. Competition Commission intermediate merger proceedings ..3414A. Competition Commission large merger proceedings .. 35515. Revocation of merger approval ..3616. Competition Tribunal merger proceedings ..3717. Competition Appeal Court merger proceedings ..3818. Intervention in merger proceedings ..39 CHAPTER 4 ..40 COMPETITION COMMISSION, TRIBUNAL, AND COURT ..40 Part A The Competition Commission ..4019. Establishment and Constitution of Competition Commission.

6 4020. Independence of Competition Commission ..4021. Functions of Competition Commission ..4122. Appointment of Commissioner ..4323. Appointment of Deputy Commissioner ..4424. Appointment of inspectors ..4525. Staff of Competition Commission ..46 Part B The Competition Tribunal .. 4726. Establishment and Constitution of Competition Tribunal 4727. Functions of Competition Tribunal ..4728. Qualifications of members of Competition Tribunal ..4829. Term of office of members of Competition Tribunal ..4930. Deputy Chairperson of Competition Tribunal ..5031. Competition Tribunal proceedings ..5032. Conflicts and disclosure of interest by members of Competition Tribunal.

7 5233. Acting by member of Competition Tribunal after expiry of term of office ..5234. Remuneration and benefits of members of Competition Tribunal ..52635. Staff of Competition Tribunal ..53 Part C The Competition Appeal Court ..5436. Establishment and Constitution of Competition Appeal Court ..5437. Functions of Competition Appeal Court ..5538. Business of Competition Appeal Court ..5539. Term of office ..57 Part D Administrative Matters Concerning theCompetition Commission and the Competition Tribunal 5840. Finances ..5841. Annual Report ..6042. Rules applicable to Competition Tribunal ..6143. Liability ..61 CHAPTER 4A ..62 MARKET INQUIRIES.

8 6243A. Interpretation and application of his chapter ..6143B. Initiating market inquiries ..6143C. Outcome of market inquiry ..64 CHAPTER 5 .. 66 INVESTIGATION AND ADJUDICATION PROCEDURES .. 66 Part A Confidential information ..6644. Right of informants to claim confidentiality ..6645. Disclosure of information ..6745A. Restricted use of information ..68 Part B Powers of Search and Summons .. 6946. Authority to enter and search under warrant ..6947. Authority to enter and search without warrant ..7048. Powers to enter and search ..7149. Conduct of entry and search ..7249A. Summons ..747 Part C Complaint Procedures ..7549B. Initiating a complaint.

9 7549C. Interim relief ..7549D. Consent Orders ..7750. Outcome of complaint ..7751. Referral to Competition Tribunal ..79 Part D Tribunal Hearings and Orders .. 8052. Hearings before Competition Tribunal ..8053. Right to participate in hearing ..8154. Powers of member presiding at hearing ..8355. Rules of procedure ..8456. Witnesses .. 8457. Costs ..8558. Orders of Competition Tribunal ..8559. Administrative penalties ..8660. Divestiture ..88 Part E Appeals and reviews to Competition Appeal Court ..9061. Appeals ..9062. Appellate jurisdiction ..9063. Leave to appeal ..91 CHAPTER 6 ..93 ENFORCEMENT ..9364. Status and enforcement of orders.

10 9365. Civil actions and jurisdiction ..9366. Variation of order ..9667. Limitations of bringing action ..9668. Standard of proof ..96 CHAPTER 7 .. 97 OFFENCES ..9769. Breach of confidence ..97870. Hindering administration of Act ..9771. Failure to attend when summoned .. 9772. Failure to answer fully or truthfully ..9873. Failure to comply with Act ..9874. Penalties ..9975. Magistrate s Court jurisdiction to impose penalties ..10076. Repealed ..10077. Proof of facts ..100 CHAPTER 8 ..101 GENERAL PROVISIONS ..10178. Regulations ..10179. Guidelines ..10180. Official seal ..10381. Act binds State ..10182. Relationships with other agencies.