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a tripartite report - Unctad

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ZAMBIA<br />

Table 8: Unfair Trading Practices Cases Closed by the Commission During the Period 2007-2010<br />

Commission Decision<br />

No. of Cases<br />

2010 2009 2008 2007<br />

Complainant given refund, or replacement, on defective product 32 45 42 35 154<br />

Case referred to other relevant authorities 11 3 6 5 25<br />

Case closed on grounds of lack of consumer protection concerns,<br />

or no breach of the Act<br />

4 5 1 6 16<br />

Case referred to Small Claims Court 3 2 0 0 5<br />

Case closed on grounds of complainant non-reachability<br />

Case closed for other reasons (such as withdrawal of complaint,<br />

2 0 16 4 29<br />

amicable resolution between complainant and respondent,<br />

and issuance of behavioural directive)<br />

3 0 10 4 17<br />

Totals<br />

Source: ZCC and CCPC Annual Reports<br />

55 55 75 61 246<br />

Fines imposed for the breach of the Act’s consumer<br />

protection provisions amounted to about K50.266<br />

<br />

was paid to the government Treasury as the Commission<br />

is not allowed to keep the money collect-<br />

<br />

on unfair trading practices, against Zambia Breweries<br />

and the MTN Zoning Distribution Agreement<br />

case, were appealed against in the High Court of<br />

Zambia. Both appeals are still to be ruled on.<br />

Most of the stakeholders that were interviewed<br />

<br />

the view that there are more consumer protection<br />

issues in the country than pure competition<br />

issues, and that consumer concerns are more critical<br />

since there are not much serious competition<br />

concerns with the big players. It should however<br />

be noted that consumer concerns by their nature<br />

are generally more transparent and evident than<br />

competition concerns, many of which are not as<br />

visible, e.g., cartel activity.<br />

4.2 Anti-Competition<br />

Practices-Prone Sectors<br />

Sectors that are prone to anticompetitive prac-<br />

<br />

include the telecommunications and broadcasting<br />

services sectors, the agricultural and mining sectors,<br />

and the beverages and cement industries.<br />

With regards the agricultural sector, the Commission<br />

submitted that this sector enjoys a lot of<br />

Total<br />

155<br />

government support and, because of that, there<br />

is a tendency for a number of restrictive business<br />

practices, mainly related to monopolization and<br />

cartelization. The most affected are the sugar,<br />

beef, and to some extent the maize, sub-sectors.<br />

In the mining sector, a number of competition<br />

complaints are now coming through to the<br />

Commission, particularly those related to refusal<br />

to deal. Most mining companies had in the past<br />

ignored the principles of competition in their operations<br />

since the mining industry had traditionally<br />

been exempted from the application of the Zambian<br />

competition law. It is only in the new Act of<br />

2010 that the exemption was lifted. The industry<br />

is therefore still relatively new to the application of<br />

competition principles, and needs intensive education<br />

on its obligations under the new Act.<br />

The beverages and cement industries in both the<br />

COMESA and SADC regions have always been<br />

highly anticompetitive because of their high<br />

concentration levels, and it is therefore not surprising<br />

that those industries in Zambia are also<br />

prone to anticompetitive practices and conduct.<br />

<br />

and market allocation arrangements as the most<br />

prevalent restrictive business practices in the two<br />

industries.<br />

-<br />

<br />

Zambia as prone to anticompetitive practices<br />

and conduct include the insurance services sec-<br />

<br />

ZAMBIA

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