Home > United Nations Online Network in Public Administration and Finance (UNPAN)
1. Global
Global
2. Africa
Africa
3. Arab States
Arab States
4. Asia & Pacific
Asia & Pacific
5. Europe
Europe
6. Latin America & Caribbean
Latin America & Caribbean
7. North America
North America
UNPAN Africa
Public Administration News  
Share
Botswana - The Launch of a New Competition Regime
Source: Polity News
Source Date: Tuesday, February 15, 2011
Focus: ICT for MDGs
Country: South Africa
Created: Feb 15, 2011

Mergers and Acquisitions


The Act provides for mandatory notification of mergers meeting asset and/or turnover thresholds prescribed by the Minister. These thresholds have not yet been promulgated. Notifiable mergers may not be implemented until the merger is approved by the Authority.


In assessing a proposed merger the Authority must determine whether the merger would be likely to prevent or substantially lessen competition or restrict trade of the provision of any service or endanger the continuity of supplies or services; or would be likely to result in any enterprise acquiring a dominant position in a market (including an enterprise which is not involved in the proposed merger). When assessing a merger, the Authority may also take into account any factors which it considers relevant to the public interest.


The Authority may grant approval subject to conditions it considers appropriate. Such conditions may be imposed where the Authority considers it necessary, reasonable and practicable to remedy, mitigate or prevent any adverse effects of a merger.


The Authority may at any time revoke its decision to approve a merger if its decision was based on materially incorrect or misleading information or if the conditions attached to the approval granted are not complied with.


Market Inquiries


Notably, and in a similar vein to the amendments introduced to South Africa’s Competition Act, the Act introduces the concept of “market inquiries”. The Authority may initiate a market inquiry with the objective of determining whether any features of each relevant sector or each type of agreement has the effect of preventing, restricting or distorting competition in connection with the supply or acquisition of any goods or services in Botswana.


If the Authority determines that adverse effects for competition exist in relation to a sector or any agreement investigated in a market inquiry, it may seek to address the effects through its powers set out in the Act in respect of prohibited practices. If the effects cannot be remedied under the Act, or are the result of other legislation or regulatory measures, the Authority may make recommendations to the Minister for further action required to provide an effective remedy.


Conduct which is prohibited or may be prohibited


Provision is made in the Act for the outright prohibition of certain agreements, while other agreements may be prohibited after investigation by the Authority.


The Act prohibits certain agreements between competing enterprises in particular, those involving practices such as price fixing, market allocation, bid rigging, restraints on production or sale and concerted practices (“horizontal agreements”). The Act further prohibits agreements between enterprises operating at a different level of the supply chain (“vertical agreements”), to the extent that such agreements involve resale price maintenance.


The Authority may prohibit other horizontal or vertical agreements if, following an investigation, they are found to substantially lessen competition in a market for any goods or services. In addition, any conduct which, after investigation, is determined to amount to an abuse of dominant position, may be prohibited. The Act provides that a “[d]ominant position means a situation in which one or more enterprises possess such economic strength in a market as to allow the enterprise or enterprises to adjust prices or output without effective constraint from competitors or potential competitors”. In determining whether an abuse of dominance has occurred, the Authority may have regard to certain factors, including whether the agreement or conduct in question maintains or promotes exports from Botswana or employment in Botswana, or advances the strategic or national interest of the country in relation to a particular economic activity.


The Authority may grant an exemption from the prohibition of an agreement if it can be reasonably expected that there will be offsetting benefits.

 

News Home

 Tag This
 Tell A Friend
del.icio.us digg this Slashdot
Rate:
0 ratings
Views: 106

Comments: 0 Bookmarked: 0 Tagged: 0



0 Comments | Login to add comment

Site map | FAQs | Terms and Privacy | Contact Us
Copyright 2008-2010 by UNPAN - United Nations Public Administration Network