/ 31 August 1998

Govt amends Competition Bill

OWN CORRESPONDENT, Johannesburg | Monday 11.00am.

THE government is proposing amendments to the Competition Bill that would see parastatals excluded from the ambit of the anti-monopoly law, according to government negotiators.

According to senior government negotiator David Lewis, the strengthened bill, currently being debated by Parliament, will not apply to parastatals and companies operating with a public licence, which will have the effect of allowing state-owned companies like Telkom, Eskom and Transnet to dominate their industries.

However, Lewis said there will be some protection in that parastatals and companies operating under public licences will be dealt with under competition law if they deviate from their mandates by competing with the private sector, or abusing their dominance.

Meanwhile, the department of trade and industry has proposed amendments to the bill that will allow for co-operation agreements between yet-to-be established competition authorities and other regulatory bodies such as the South African Telecommunications Regulatory Authority and thre National Electricity Regulator, to ensure effective application of the law and to avoid duplication.