aewg panel bos 4 challenges faced as a young competition authority april 2015 heinrich mihe gaomab...
TRANSCRIPT
AEWG Panel BOS 4
CHALLENGES FACED AS A YOUNG COMPETITION
AUTHORITY
April 2015
Heinrich Mihe Gaomab IISecretary & CEO
Namibian Competition Commission (NaCC)
Presentation Outline
Background NaCC The Namibian Competition Act
Preliminary Provisions Chapter 3: Restrictive Business Practices Chapter 4: Mergers Offences and Penalties
Major Challenges Economic structure Provisions of the Act Lack of CLP Capacity constraint Availability of Data
Way Forward
BACKGROUND 1/3
NaCC The NaCC was established in terms of the
Competition Act 2 of 2003. Ensures enforcement of the Competition Act:
Investigate anti-competitive agreements and unilateral conducts
Assess and exemption applications Analyse and approve mergers notifications
Provide advocacy Conduct research and disseminate findings
to policy makers, businesses and general public
BACKGROUND 2/3
The Namibian Competition Act-(Based on EU competition law)
Preliminary Provisions: Enhance the promotion and safeguarding of
competition in Namibia Applies to all economic activities within Namibia
or having an effect in Namibia Chapter 3: Restrictive Business Practices
Part I: Restrictive Agreements, Practices and Decisions
Part II: Abuse of Dominance Part III: Exemption
Chapter 4: Mergers
BACKGROUND 3/3
The Namibian Competition Act cont... Offences and Penalties:
Hindering administration of the Act Failure to comply with summons Failure to comply with order of the Court Other offences:
Interference Providing false information Disclosing confidential information (Commission staff/memebers)
Penalties: Maximum of N$ 500,000 (USD42,000) or 10 year imprisonment
or both for failure to comply with order of the Court Maximum of N$ 50,000 (USD4,200) or 3 year imprisonment for
or both disclosing confidential information Maximum N$ 20,000 (USD1,700) or 1 year imprisonment or both
for any other offence as per the Act
MAJOR CHALLENGES 1/5
Economic Structure: Many state owned monopolies in the energy, transport,
mobile and fixed telecommunications sectors. Some are vertically integrated e.g.
Telecommunications sector Some sector regulators need to be capacitated to
effectively deal with ‘ex-ante’ regulations Some monopolies protected through Govt policies e.g.
Electricity generation-NaCC looking into this sector
MAJOR CHALLENGES 2/5
Provisions of the Act: No clear distinction between the treatment of
horizontal and vertical agreements No distinction between hardcore cartels and other
softer horizontal agreements. Mergers not empowered to summon for information
MAJOR CHALLENGES 3/5
Lack of CLP: The NaCC does not have in place a Corporate Leniency
Policy Have started with drafting of the CLP Experience delays at Attorney General office to legal
opinion With no CLP in place, it makes it difficult to detect
cartels So far only one cartel case has been investigated by
the NaCC
MAJOR CHALLENGES 4/5
Capacity Constraint: Competition relatively new in Namibia Competition Law courses only recently introduced in
high learning institutions Staff turnover within the NaCC due to better
opportunities outside Relatively new staff members especially in the RBP
Division with an average experience of 1 year and 6 months
MAJOR CHALLENGES 5/5
Availability of Data: Because of lack of summoning powers in merger cases,
availability of data is an issue Availability of data is a challenge in merger cases to
conduct economic tests such as the SSNIP Availability of data is also an issue to the NaCC’s
Economic and Sector Research Division
WAY FORWARD 1/2
As per the Act provides on regular intervals policy advise to Govt of Rep. of Namibia
The NaCC is at the final stages of review the Competition Act which will address challenges with regards to the provisions of the Act
The NaCC will develop a staff retention strategy
Enhance capacity building with special focus on in-house trainings
Develop a regularly updated information database
WAY FORWARD 2/2
Accelerate the development of the CLPImprove coordination with sector regulatorsNaCC will continue to develop and publish
various guidelines with regards to mergers and enforcement
Improve the NaCC’s organizational structure
THANK YOU