FRIDAY, 10.30AM:
AFTER three years in the drafting, government on Thursday released new competition policy guidelines that will see a new watchdog body set up to investigate abuses by powerful corporations.
Presenting the new policy guidelines to the National Economic Develpment and Labour Council, Trade and Industry Minister Alec Erwin said it is hoped the policy will be legislated by the end of next year.
The guidelines do not offer specifics as to what constitutes a monopoly, but suggests that anti-competitive behaviour will be targeted rather than the size of a company or its concentration of market power. The guidelines propose sweeping powers for government to dilute market power, prevent mergers and acquisitions and force companies to abandon particular markets.
“Where artificial, non-economic concentrations of wealth and power exist — and so do not serve the public interest — these will be addressed forthrightly,” Erwin said.
He added: “The policy is not aimed at the absolute size of enterprises, or the prohibition of mergers and acquisitions in concentrated industries, or enforced unbundling, or the existence per se of monopolies. These will be judged on a case-by-case basis, so as to improve the position of SA as a whole and the economic lives of its people.”
The competition law will be administered by an autonomous watchdog body that will operate without political or government interference.