Cross-border prosecution of anti-competitive conduct on the cards

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Cross-border prosecution of anti-competitive conduct on the cards

7:19 CAT | 07 Jun 2016

Competition authorities in the Southern African Development Community (Sadc) are teaming up in an effort to tackle cross-border anti-competitive practices.

On Monday eight countries in the 15-member bloc signed a memorandum of understanding (MOU) that will form the basis of their collaboration to strengthen competition law in the region.

SA being the most established competition authority in sub-Saharan Africa was likely to play a significant role in driving the co-operation between the authorities, said Norton Rose Fulbright SA director Jason van Dijk.

“We have been anticipating more formalised co-operation between African competition authorities for some time, as the common message that has emanated from our interactions with the various authorities is the need for greater co-operation and efficient interaction between them,” he said.

Van Dijk said it was hoped that the MOU was likely to lead to a more efficient identification of anti-competitive conduct and potentially result in swifter prosecutions.

“It will also hopefully lead to a more co-ordinated and predictable approach to merger investigations, which are likely to be welcomed by firms and other stakeholders involved in multi-jurisdictional mergers,” said Van Dijk.

The Eurozone has a similar initiative at work through the European Competition Network.

The network was established to ensure harmonisation between the national competition laws of the 28 European Union (EU) member states and the European Commission (EC) competition law. Its objectives include ensuring co-operation between the competition authorities of the EU member states and the EC in their application of the EC competition rules.

The Sadc members which are part of the MOU are Malawi, Mozambique, Namibia, Seychelles, SA, Swaziland, Tanzania and Zambia.

The seven members that have not signed are Angola, Democratic Republic of Congo, Lesotho, Madagascar, Mauritius, Malawi and Zimbabwe.

Commissioner Tembinkosi Bonakele at the Competition Commission SA said: “The MOU provides a framework for co-operation in competition enforcement within the SADC region and we are delighted to be part of this historic initiative.”

Source: Business Day Live