Transcript Competition Policy and Law in Economic Development

AEWG Panel BOS 4
CHALLENGES FACED AS A
YOUNG COMPETITION
AUTHORITY
April 2015
Heinrich Mihe Gaomab II
Secretary & CEO
Namibian Competition
Commission (NaCC)
Presentation Outline
 Background
 NaCC
 The Namibian Competition Act
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Preliminary Provisions
Chapter 3: Restrictive Business Practices
Chapter 4: Mergers
Offences and Penalties
 Major Challenges
 Economic structure
 Provisions of the Act
 Lack of CLP
 Capacity constraint
 Availability of Data
 Way Forward
BACKGROUND 1/3
 NaCC
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The NaCC was established in terms of the
Competition Act 2 of 2003.
Ensures enforcement of the Competition Act:
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Investigate anti-competitive agreements and unilateral
conducts
Assess and exemption applications
Analyse and approve mergers notifications
Provide advocacy
 Conduct research and disseminate findings to
policy makers, businesses and general public
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BACKGROUND 2/3
 The Namibian Competition Act
-(Based on EU competition law)

Preliminary Provisions:
Enhance the promotion and safeguarding of
competition in Namibia
 Applies to all economic activities within Namibia or
having an effect in Namibia
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Chapter 3: Restrictive Business Practices
Part I: Restrictive Agreements, Practices and Decisions
 Part II: Abuse of Dominance
 Part III: Exemption
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Chapter 4: Mergers
BACKGROUND 3/3
 The Namibian Competition Act cont...
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Offences and Penalties:
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Hindering administration of the Act
Failure to comply with summons
Failure to comply with order of the Court
Other offences:
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Interference
Providing false information
Disclosing confidential information (Commission staff/memebers)
Penalties:
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Maximum of N$ 500,000 (USD42,000) or 10 year imprisonment or
both for failure to comply with order of the Court
Maximum of N$ 50,000 (USD4,200) or 3 year imprisonment for or
both disclosing confidential information
Maximum N$ 20,000 (USD1,700) or 1 year imprisonment or both
for any other offence as per the Act
MAJOR CHALLENGES 1/5
 Economic Structure:
 Many state owned monopolies in the energy, transport, mobile
and fixed telecommunications sectors.
 Some are vertically integrated e.g. Telecommunications sector
 Some sector regulators need to be capacitated to effectively deal
with ‘ex-ante’ regulations
 Some monopolies protected through Govt policies e.g.
Electricity generation-NaCC looking into this sector
MAJOR CHALLENGES 2/5
 Provisions of the Act:
 No clear distinction between the treatment of horizontal and
vertical agreements
 No distinction between hardcore cartels and other softer
horizontal agreements.
 Mergers not empowered to summon for information
MAJOR CHALLENGES 3/5
 Lack of CLP:
 The NaCC does not have in place a Corporate Leniency Policy
 Have started with drafting of the CLP
 Experience delays at Attorney General office to legal opinion
 With no CLP in place, it makes it difficult to detect cartels
 So far only one cartel case has been investigated by the NaCC
MAJOR CHALLENGES 4/5
 Capacity Constraint:
 Competition relatively new in Namibia
 Competition Law courses only recently introduced in high
learning institutions
 Staff turnover within the NaCC due to better opportunities
outside
 Relatively new staff members especially in the RBP Division
with an average experience of 1 year and 6 months
MAJOR CHALLENGES 5/5
 Availability of Data:
 Because of lack of summoning powers in merger cases,
availability of data is an issue
 Availability of data is a challenge in merger cases to conduct
economic tests such as the SSNIP
 Availability of data is also an issue to the NaCC’s Economic and
Sector Research Division
WAY FORWARD 1/2
 As per the Act provides on regular intervals
policy advise to Govt of Rep. of Namibia
 The NaCC is at the final stages of review the
Competition Act which will address challenges
with regards to the provisions of the Act
 The NaCC will develop a staff retention strategy
 Enhance capacity building with special focus on
in-house trainings
 Develop
a regularly updated information
database
WAY FORWARD 2/2
 Accelerate the development of the CLP
 Improve coordination with sector regulators
 NaCC
will continue to develop and publish
various guidelines with regards to mergers and
enforcement
 Improve the NaCC’s organizational structure
THANK YOU
