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a tripartite report - Unctad

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PREFACE<br />

agreements. . In the United Republic of Tanzania,<br />

there is no market share threshold and parties can<br />

voluntarily notify any agreement that they believe<br />

deserves an exemption. The standard for an exemption<br />

is very similar in the two jurisdictions and<br />

<br />

the negative effects associated with the restrictions<br />

of competition. In both jurisdictions the law<br />

requires that in order to grant an exemption there<br />

<br />

-<br />

<br />

<br />

<br />

effective way to promote compliance with an antitrust<br />

law, since the most identify serious restrictions<br />

-<br />

<br />

ject<br />

to an authorization system, notify only agreements<br />

that they believe can be exempted. Serious<br />

<br />

just overburden competition authorities with paper<br />

work, but do not result in an improvement of<br />

the competitive environment.<br />

-<br />

<br />

ated<br />

to a fee) and in that case the role that it plays<br />

tions<br />

increase too much, the Authorities may need<br />

to issue block exemption regulations that would<br />

<br />

of what happened in the European Union before<br />

<br />

would make any attempt of rationalization impossible<br />

(unless funds are guaranteed to the Authority<br />

by some other source).<br />

The individual country <strong>report</strong>s for the United Republic<br />

of Tanzania and Zambia do not contain recommendations<br />

that the substantive parts of their<br />

laws be changed. There are however some suggestions<br />

for revising the text of the Legislation on<br />

some procedural issues (for example the threshold<br />

for not restrictiveness of vertical agreements in<br />

Zambia) but these suggestions can be implemented<br />

through case law developments and through<br />

<br />

informed on what is prohibited. This is the case<br />

of vertical agreements and horizontal cooperation<br />

agreements in the area of technology transfers<br />

and R&D. A similar effort could be undertaken for<br />

abuse of dominance type violations.<br />

The regional groupings, to which the three jurisdictions<br />

belong, could help in the issuing of these<br />

guidelines, providing reference documents that<br />

individual jurisdictions could then use domestically.<br />

What is any case very important is that decisions<br />

by the authorities be motivated and published<br />

by making them available on the website of the<br />

authorities. With legal provisions of a general<br />

type decisions serve an educational purpose and<br />

should be made available to everybody, so as to<br />

enhance legal certainty. Also the judiciary should<br />

have the same type of obligations and judgments<br />

in competition cases should be made easily available,<br />

possibly on the website of the authorities.<br />

2. The investigative powers of<br />

competition authorities<br />

The major problem in antitrust cases is that the evidence<br />

that needs to be collected to prove a violation<br />

is not freely available in the market nor in<br />

the information set of possible complainants. For<br />

example in a predatory pricing case, the excluded<br />

competitor would not have any information on the<br />

actual level of costs of the dominant company to<br />

be used as a benchmark to which to compare the<br />

dominant company supposedly predatory prices.<br />

Similarly in a cartel case, a customer of the cartel<br />

would not have information on how the cartel operates<br />

or, even more importantly, on whether the<br />

cartel actually exists. As for the Authority role, simply<br />

asking those that might have committed a violation<br />

to provide the necessary evidence would not<br />

<br />

provide some information can be effective only if<br />

-<br />

<br />

will not respond or will not say the truth. This is why,<br />

<br />

interest in providing the necessary information for<br />

the Authority to issue a quick decision, competition<br />

authorities need strong investigative powers in<br />

order to be able to gather the necessary evidence.<br />

In all three jurisdictions the Authority can open an<br />

own motion enquiry, act on complaints, require a<br />

person to submit information, to produce a document<br />

or to appear in person.<br />

9<br />

COMPARATIVE ASSESMENT

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