The Competition Act as seen from a business perspective : discussion and helpful tools

Fourie, Linda Ann (2001-12)

Thesis (MBA)--Stellenbosch University, 2001.

Thesis

ENGLISH ABSTRACT: The recent enactment of the Competition Act 89 of 1998, has resulted in a world of speculation and discussion. 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 tracks with the new legislation. South African legal application and protection has been rather one sided in previous years with specific reference to the protection of minorities. This was exasperated by the political and economical situation in South Africa in the eighties. Sanctions led to consolidation of companies and industries, because companies were not allowed to take money of the country. This had a negative result on the competitive situation and the little guys had to survive on the dregs. The new Act is based on the American anti-trust legislation as well as the competition law of the European Union. It is therefore of utmost importance to take note of this international law with specific reference to the interpretation of the Competition Act due to the fact that the Act is so recent. The Competition Act expressly provides for the use of foreign law in the interpretation of the Act. This project is not a comparative study between current competition legislation available in the world. It purports to be a more user friendly guide to business people to make the Act more useful and understandable. The project focuses on some helpful hints to assist the reader with interpretation and application. The project gives a short description of the development of competition legislation in South Africa in Chapter 2. Chapter 3 is a discussion on the main sections of the Act that deal with prohibited practices, dominant position, mergers and remedies and enforcement. A few examples are given of uncompetitive behaviour. Chapter 4 deals with the helpful hints and illustrates thresholds as determined in section 11, with the help of diagrams, it also lists a few helpful references of handy resources. The project ends off with a short conclusion.

AFRIKAANSE OPSOMMING: Die onlangse inwerkingtreding van die Wet op Mededinging 89 van 1998, het 'n wêreld van spekulasie en bespreking ontketen. Die rede hiervoor is dat die voorheen "beskermde monopolieë" tot op hede kon voortgaan met besigheid sonder stoornis, hierdie stuk wetgewing het hulle egter nou tot halt geroep. Suid-Afrikaanse regswerking en -beskerming was in die vorige jare van regering effens eensydig met betrekking tot beskerming van minderhede. Die verskynsel is aangehelp deur die politieke en ekonomiese situasie waarin SA homself bevind het in die tagtigerjare. Sanksies het gely tot konsolidasie van maatskappye en industrieë, aangesien firmas nie geld uit die land mag geneem het nie. Die resultaat hiervan was monopolieë en konglomerate. Hierdie verskynsel het negatief ingewerk op kompeterende ekonomiese toestande, en die "kleiner outjies" moes die krummels van die tafel af eet. Die nuwe stuk wetgewing is gebasseer op die Amerikaanse "anti-trust" wetgewing sowel as die kompetisie wetgewing van die Europese Unie. Dit is noodsaaklik om kennis te neem van hierdie Internasionale wetgewing, veral in terme van die interprestasie van die Wet op Mededinging, siende dat ons eie wetgwing baie resent is. Die Wet maak ook daarvoor voorsiening dat Internasionale reg in ag geneem moet word vir interpretasie van enige van die artikels van die Wet. Hierdie werkstuk is nie 'n vergelykende studie tussen die bestaande wetgewing wat in die wêreld beskikbaar is nie, maar poog om 'n meer gebruikers vriendelike gids te wees vir veral besigheidsmense om die Wet makliker bruikbaar en verstaanbaar te maak. Die studie fokus daarop om 'n opsommende beskrywing te gee van die Wet sowel as die formulering van bepaalde hulpmiddels om die leser van hulp te wees met interpretasie en toepassing. Die werkstuk gee 'n kort beskrywing van die ontwikkeling van Kompetisie wetgewing in Suid-Afrika in Hoofstuk 2. Hoofstuk 3 is 'n bespreking van die hoof artikels van die Wet wat handelaar beperkende praktyke, dominansie, samesmeltings en oornames, remedies en afdwinging. Daar volg ook 'n bespreking van 'n paar tipiese voorbeelde van onkompeterende praktyke. Hoofstuk 4 handel oor hulpmiddels en illustreer by wyse van diagramme, die drempels vir vasstelling van welke firma onderhewig is aan artikel 11, sowel as 'n paar verwysings van handige bronne. Die werkstuk sluit af met 'n kort gevolgtrekking.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49707
This item appears in the following collections: