CompCom.co.za
Title
South African Competition Commission
Description
The new South African government signaled its intention to review the South African competition law regime in the White Paper on Reconstruction and Development in 1994 (Notice 1954 Gazette 16085 of 23 November 1994). The need for a new competition policy in South Africa must be seen in the context of a historical legacy of excessive economic concentration and ownership, collusive practices by enterprises and the abuse of economic power by firms in dominant positions. It was also recognized, however, that the South African economy and society was in a state of transition, in terms of a broader restructuring of the economy, the effects of globalization and trade liberalization and the need to redress past inequality and non-participation in the national economy. A fundamental principle of competition policy and law in South Africa thus is the need to balance economic efficiency with socio-economic equity and development.
The origins of competition policy in South Africa lie with the Regulation of Monopolistic Conditions Act, 1955 (Act No. 24 of 1955). A review of the Act in the 1970s found that it had been unsuccessful in preventing a dramatic increase in oligopolies. As a result, the Maintenance and Promotion of Competition Act, 1979 (Act No.96 of 1979) was introduced and the Competition Board, tasked with administering the Act, was established.
The 1979 Act was amended in 1986 to give the Competition Board further powers, including the ability to act not only against new concentrations of economic power but also existing monopolies and oligopolies. Despite the amendments, however, it was widely recognized that technical flaws in the Act prevented the effective application of competition law on both substantive and logistical grounds.
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