Chairperson, I'm presenting on behalf of Dr Pierre Rabie, who is unable to attend today.
This Bill seeks to amend the Competition Act of 1998 to provide greater certainty regarding the concurrent jurisdiction between the Competition Commission and other regulatory authorities.
It introduces provisions to address other practices that tend to prevent or distort competition in the market for any particular goods or services.
The DA supports this Bill as it does tighten up gaps in the current legislation. This piece of consumer legislation is highly technical, which should contribute to acceptable international practice by all sectors of the economy.
The media stated that the final version of the Bill is a vast improvement on earlier drafts. The final version of the Bill is a compromise and acknowledges the potential for constitutional clashes when shifting enforcement of competition policy from the civil to the criminal domain.
The introduction of the concept of personal liability for those individuals actually involved in collusion is introduced. However, possible criminal action against company directors is the most controversial aspect of the Bill.
The implementing authorities, namely the Competition Commission and the Competition Tribunal, made submissions that this could undermine their success in curbing cartels. Their main argument was that directors would be reluctant to co-operate as they have under the current corporate leniency policy.
Another ethical question remains unanswered: Did the large fines imposed on companies found to be involved in anti-competitive behaviour have the desired effect? It was mentioned during the public hearings that the benefits of collusion were perceived by some to outweigh the possible legal cost because proving culpability is often difficult.
The Bill also introduces the concept of complex monopolies. In essence, this arises where 75% of the market accrues to no more than five firms. The application of this particular concept or definition in the South African context is questionable and, therefore, open to challenge. For historical reasons some sectors of the South African economy display characteristics of market concentration as opposed to those of complex monopolies.
To conclude, this Bill in essence attempts to prevent any artificial barriers to trade and to strengthen present competition law. Thank you. [Applause.]