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Competition Commission Meeting Our Objectives

Explore the impact of the Competition Commission's work, mergers, investigations, exemptions, and employment effects. Learn about our objectives and interesting industry insights.

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Competition Commission Meeting Our Objectives

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  1. Competition CommissionMeeting Our Objectives Presentation to Portfolio Committees Cape Town 13 June 2001 ADV. MENZI SIMELANE

  2. Objectives To provide • An overview of our achievements to date • Economic information

  3. Background • Commission became operational on 1 September 1999 – 20 months old • The Competition Act has been amended twice • Most recent amendment became effective 1 February 2001 • Thresholds increased dramatically, reducing merger workload by 60% • Jurisdiction became concurrent with other regulators – has increased merger & investigation activity

  4. Meeting Our ObjectivesObjectives of the Act • To promote efficiency, adaptability and development of the economy • To provide consumers with competitive prices and product choices • To promote employment and advance social and economic welfare of South Africa • To expand opportunities for South African participation in world markets and recognise the role of foreign competition in the Republic • To ensure that SME’s have an equitable opportunity to participate in the economy • To promote a greater spread of ownership, in particular to increase the ownership stakes of historically disadvantaged

  5. Meeting Our ObjectivesOur Activities • Merger evaluations • Investigations into prohibited practices • Exemption evaluations • Advisory opinions • Education & Information • Policy & research (non-case) • Legislative reviews

  6. Meeting Our Objectives Mergers

  7. Meeting Our Objectives Mergers Sample of mergers between April - December 2000

  8. Meeting Our Objectives Mergers

  9. Meeting Our ObjectivesInvestigations

  10. Meeting Our ObjectivesInvestigations

  11. Meeting Our ObjectivesInvestigations

  12. Meeting Our ObjectivesExemptions • 9 applications (4/2000 – 3/2001) • 3 pharmaceutical manufacturing • 2 healthcare services • 4 manufacture of transport equipment, cement products, liquid fuels and shipping lines • All relating to restrictive horizontal practices

  13. EfficiencyCost per Output

  14. EfficiencyTurnaround Time

  15. Interesting InformationOwnership Concentration

  16. Interesting InformationProblem Sectors

  17. Interesting InformationMergers & Employment • In 125 cases evaluated a net loss employment of 197 jobs occurred • Industries with combined market share of 60%-100% resulted to 77% of the above job losses • Competitive industry with low levels of concentration resulted to only 18% of the above job losses • Concentrated industries at Cr4 above 60% & competitive industries at Cr4 below 40% resulted to 4 times more job losses • 100% employment gains were within Cr4 in the ranges of 20% to 60%

  18. Questions & Clarification

  19. How to contact us Website: www.compcom.co.za E-mail: CCSA@compcom.co.za Tel: (012) 482-9000 Fax: (012) 482-9003

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