Transcript BOTSWANA COMPETITION BILL

BRIEF ON THE COMPETITION LAW
OF BOTSWANA
by
Thula Kaira - CEO
Presentation to the Civil Aviation Authority of Botswana
Gaborone, 15 August 2012
PRESENTATION OUTLINE
1. Introduction
2. Rationale of Competition Policy/Law
3. Expectations from the Law
4. Conclusions
1. INTRODUCTION
The Policy
preceded by an
Economic Mapping
Survey that noted
levels of
unemployment,
increasing
The Government of
dominance of
Botswana through its
foreign firms in
Cabinet adopted the
National Competition Policy Botswana’s
economy
for Botswana in July 2005
1. INTRODUCTION cont’d
The EMS also highlighted:
1. The need to safeguard
and promote the growth
and development of
citizen-owned SMEs; and
2. Other Govt policy initiatives such as
the diversification of the economy
1. INTRODUCTION cont’d
Arising from
the Policy,
the
Government
through its
National
Assembly/
Parliament
enacted the
Competition
Act in 2009
whose
objectives in
its preamble
are to:
Establish
the
Competition
Authority
Outline its
mandate
Regulate
competition
in the
economy
1. INTRODUCTION cont’d
Guided
THE
COMPETITION
AUTHORITY IS
A
Govt
Agency
By
Accountable
Other
overarching
National
Policies
to Govt
through the
Minister
ELEMENTS OF THE COMPETITION
ACT OF BOTSWANA
CARTELS:
VERTICAL
AGREEMENTS
:
- Resale Price
Maintenance
- Price-Fixing
- BidRigging/
Collusion
- Market/
Customer
Allocation
ABUSE OF
DOMINANCE
:
- Excessive
Pricing
- Predatory
Pricing
- Territorial
Restraints
- Tied Selling
MERGERS
Acquisitions
-Takeovers
Amalgamations
2. RATIONALE FOR COMPETITION LAW
• Competition law controls selfish
business gains and consumer
exploitation and strives to facilitate
broad-based wealth creation by
ensuring and provoking open and fair
markets e.g by, inter alia, questioning
& scrutinizing market agreements, and
reviewing commercial &
administrative barriers to domestic
trade (just as trade law tries to do the
same in intl trade)
RATIONALE cont’d
Markets are susceptible to be
captured by greedy business
entrepreneurs to the
detriment of other possible
beneficiaries and hence the
need for a transparent control
system
UN SET of Principles & Rules on Competition
… States should, at the national level or through
regional groupings, adopt, improve and effectively
enforce appropriate legislation and implementing
judicial and administrative procedures for the control of
restrictive business practices, including those of
transnational corporations…
• … States, in their control of restrictive business practices,
should ensure treatment of enterprises which is fair,
equitable, on the same basis to all enterprises, and in
accordance with established procedures of law. The laws
and regulations should be publicly and readily available
3. EXPECTATIONS FROM THE LAW
 Creating a ‘fair’ business climate can be no
task for one Govt agency as various agents
have been established to play their expert
part
 Definitions of ‘unfair competition’ are varied
in the court of public opinion
 As the competition law is in its infancy, there
is need to identify and maintain a support
base for this highly law, to include:
11
Policy Makers/
Politicians
Big
Business
Sector
Technocrats
The Press
Consumers
Regulators
CSOs/
Academia
SMEs
12
3. EXPECTATIONS…cont’d
 The Act requires the CA to ensure most of its
decisions lead to:
Lower prices, higher quality or greater
choice for consumers
Promotion or maintenance of efficient
production, distribution or provision of
goods & services
Advancing the strategic or national interest
of Botswana in a particular economic area
13
3. EXPECTATIONS… cont’d
Provide social-benefits which outweigh
the effects on competition;
Take into account citizen empowerment
initiatives of Government;
Further other national development
programs
 To achieve these public interests, the Authority
engages as wide a range of stakeholders as
possible before decisions are taken.
14
4. CONCLUSIONS



The National Competition Policy
addresses all public bodies to
embrace rules and principles of
competition in their decision
making/acts which affect trade &
commerce
As part of the public service delivery
system of Govt, there is need for
regulators to find and focus on
common ground than fortify the Silos
We look forward to learning from the
enormous experiences of CAAB
15
KE A LEBOGA…
FOR FURTHER INFORMATION:
Thula Kaira - CEO
Competition Authority
Plot 50664, Fairgrounds Office Park
Private Bag 00101
Gaborone, BOTSWANA
Tel: +267 393 4278
Fax: +267 312 1013
Email: [email protected]
[email protected]
FACEBOOK: Competition Authority – Botswana
Twitter: CompetitionBots