The Competition Act No 89 of 1998 (“the Act”) came into operation in September 1999 and has far-reaching consequences for local and foreign businesses operating in South Africa. In recent years, the Competition Commission has become increasingly active in monitoring and enforcing compliance – its whistle blowing provision is resulting in increased admissions of cartel activity.
A penalty of up to 10% of a firm’s annual turnover can be imposed for non-compliance with the conduct-related provisions of the Act, and in relation to merger control, the Competition Authorities can order divestiture of certain assets. In addition, in terms of the Competition Amendment Act of 2009, directors and officers of colluding firms are now exposed to personal criminal liability.
Deloitte Legal has designed a Competition Law Compliance Programme aimed at assisting clients to identify their Competition Law risk areas and create a culture of compliance.