POLICY: COMPLIANCE TO COMPETITION ACT (ACT 89 OF 1998)
The South African economic system is based around a free market and is controlled by market forces of supply and demand as opposed to one regulated by government controls. Companies and resources are owned by private individuals or entities who are free to trade contracts with each other. To ensure fair trade practices and prevent anti competitive practices in the marketplace, the Competition Act was established in 1998.
The purpose of the Competition Act is to promote and maintain competition in South Africa, that includes the following goals:
- To promote the efficiency, adaptability and development of the economy.
- To provide consumers with competitive prices and product choices.
- To promote employment and advance the social and economic welfare of South Africans.
- To ensure that small and medium-sized enterprises have an equitable opportunity to participate in the economy.
SANA and its members undertake to abide by the requirements of the Competition Act (Act 89 of 1998) and agrees to conduct business and discussions in an ethical manner.
Actions that are prohibited are:
- Directly or indirectly fixing of a purchase or selling prices.
- Price discrimination.
- Dividing of markets by allocating suppliers, customers or goods/services or market shares.
- Collusive tendering.
- Minimum resale price setting or maintenance.
- Charging excessive prices to the detriment of customers/consumers.
- Refusal to give a competitor access to an essential facility when it is economically feasible.
- Engaging in exclusionary acts such as refusing to supply scarce goods to a competitor, charging prices that are below cost to exclude rivals from the market, buying up a scarce input required by a competitor or inducing suppliers or customers to not deal with a competitor.
To read the full Act, click here.