a tripartite report - Unctad

ZIMBABWE
Regarding the handling of case of anticompetitive
behavior, it should be pointed out that there are
a number of success stories in the Commission’s
handling of competition cases. As found out in a
study undertaken in 2008 on the impact of the implementation
of competition policy and law in Zimbabwe
203 , the control and abolishment of restrictive
socio-economic nature in the country. The Commission’s
competition intervention into various industries
and sectors in Zimbabwe through the issuance
of remedial orders and conclusion of Consent
Agreements or Undertakings on restrictive business
practices can be summarized as follows:
horizontal restraints arising from collusive and
cartel-like behaviour of a grossly anticompetitive
nature were abolished in key and essential
industries and sectors, such as the cement
industry, the coal industry and the dry cleaning
and laundry services sector;
vertical restraints with substantial economic and
under control, in other essential industries like the
coal tar fuel industry;
in consumer products industries such as the
alcoholic beverages industry and the cigarette
industry, as well as in utilities sectors such as
electricity and telecommunications that directly
affect the consumer, were brought to an end; and
entry barriers were removed in industries such as
the cement industry, the coal industry, the sugar
industry, and the fertilizer industry, resulting in
the introduction of new economic players and
increased employment.
More recently, the Commission’s intervention in
the health insurance services sector, through its
full-scale investigation into the abusive practices
Table 6: Commission’s Merger Determinations From 1999 to Date
Merger Determination
Period
1999-2005
2006-2009
2010-2011
2012 to date
Source: CTC
199
by Cimas Medical Aid Society against liver dialysis
patients, resulted in the issuance of remedial orders
that not only strengthened competition in that
sector but also had immense consumer protection
sector, through another full-scale investigation
into abuse of monopoly position by the electricity
utility, also got acclaims from the government, the
business community, and the general public because
its remedial orders had far-reaching positive
implications of a socio-economic nature.
Despite these success stories, given the architecture
of the law with regard to issues is considered
to be Restrictive Practices in ZCA and the nature
prohibitions associated to the anticompetitive restrictive
practices, without prejudice to the sovereignty
of CTC’s decisions, it is logical to conclude
that there is need a new law to properly provide
for restrictive practices, identify and sharpen offences
associates to such practices and prohibit
the same commensurately.
Invariably, there arises an issue of concern as to
what makes many cases be dropped after they
that the inadequacies in the law and lack of proper
competition knowledge at both the staff and
Commission levels have contributed to such a scenario,
hence the need for remedial action to such
undesired state of affairs at CTC.
3.8.2.2 Merger control
The Commission has made determinations on a
total of 137 mergers and acquisitions since it effectively
commenced its operations in 1999. Of those,
71 transactions were determined during the period
1999-2005, 49 during the period 2006-2009,
16 during the period 2010-2011, and 1 already
determined so far during the current 2012 year, as
shown in Table 6 below:
Comments
Of the 71 mergers that were determined during the period 1999-2005, 52 were approved without any conditions,
11 were approved with some conditions204, 6 were not challenged205, and 2 were prohibited.
Of the 49 mergers and acquisitions that the Commission determined during the period 2006-2009, 33 were
approved without any conditions, 11 were approved with some conditions, and 5 were not challenged.`
Of the 16 mergers that were determined during the period 2010-2011, 11 were approved unconditionally,
while the remaining 5 were approved with some conditions.
So far this year, the only merger that was determined by the Commission was approved without any conditions.
ZIMBABWE