The Competition Commission told Parliament’s Portfolio Committee on Trade and Industry that several critical sectors in the South African economy were still being dominated by large firms – and that the regulator would introduce measures to address the imbalance.
Possible measures would include tackling dominant firms by breaking down oligopolies and imposing divestiture – where a dominant company with consolidated power could be compelled to sell off a subsidiary or investments, as outlined in the Competition Amendment Act of 2020.
The Competition Commission briefed the committee on its Concentration Report on Tuesday morning. The report found continued concentration in sectors including agriculture, retail, and pharmaceuticals drove up prices and undermined job creation.
Sources for the data in the Concentration Report included information from the South African Revenue Service (SARS) database on small, medium, and large businesses as well as annual reports for listed companies.
South Africa’s watchdog has also eyed the growing digital platform economy in the country, probing the online trading market last year over concerns of high levels of concentration in many of these markets.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI