Business Ethics and Corporate Governance, Second Edition

THE THREE FOCUS AREAS OF COMPETITION ACT

The focus of the Competition Act was on three identified areas where anti-competitive practices could prevail.

1. Agreement amongst enterprises: The Act deals only with those agreements between enterprises, which have an appreciable adverse effect on competition. This means that all restrictive agreements are not held to be anti-competitive. The rule of reason is to determine whether an agreement is anti-competitive. The objective of the rule of reasons is to determine whether on merits the activity promotes or restrains competition. To determine this, the CCI will consider the structure of the market as well as the action in question. The CCI is vested with the power to enquire into cartels of foreign origin ...