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ZAMBIA 1.3 National Competition and Consumer Policy The formulation of Zambia’s national competition and consumer policy was completed in 2009, 15 years after the coming into force of the country’s competition law through the Competition and Fair Trading Act, 1994. Normal practice is that the formulation of competition policy precedes the drafting of competition law because the law should be based on the policy. The enactment of governing laws before the formulation of the base policies seems to be a common practice in the regulatory sector of Zambia. For example, the Investment Act, 1993 was also enacted before the formulation of the investment policy 119 , and the enactment of the Citizens Economic Empowerment Act, 2006 preceded the formulation of the economic empowerment policy, which is still being formulated 120 . The reasons given the actors to apply it, and assessing the economic importance of a policy through the effective enforcement of the law before formalizing the policy. 1. Mergers and Acquisitions To prevent the creation of a market structure that can lead to a likely substantial lessening of competition and/or abuse of dominance. 2. Abuse of Dominance To prevent likely and remedy existing abuse of dominant position of market power. 3. Essential Facilities To ensure equitable and affordable access to the facility by potential and actual users. 4. Restrictive Business Practices To monitor, control and prohibit business conducts that are likely to prevent, restrict or distort competition in Zambia. 103 A comprehensive competition policy should take into account all government policies that promote as well as restrict competition. It therefore should extend beyond traditional competition law. In any country there are several pieces competition law, which must be taken into account in a comprehensive competition policy. In addition to traditional competition law, these include trade and industrial policies, privatization and investment policies, sector regulation, and consumer protection. Zambia’s national competition and consumer policy as approved by Cabinet comprehensively covers the main elements. 121 Its vision is: To develop and facilitate an enabling national growth environ- provides for procedural fairness and for the protection of the competitive process and consumers. The objectives and strategies of Zambia’s national competition and consumer policy are summarized below: • to ensure that only mergers that are likely to adversely affect competition notify. • • The ZCC shall consult stakeholders in merger assessment. • preserve of the ZCC. • Undertaking research studies and using appropriate analytical tools to identify abuse of dominance and make informed decisions. • Put in place enforcement mechanisms that would deter the persons from abuse of dominant position of market power. • Publication of access guidelines such as minimum cost, timetable for access to the facility, timeframe be more • The ZCC should regularly monitor the implementation of the guidelines. • Put in place adequate enforcement mechanisms that will enable the relevant authorities prohibit and deter restrictive business conduct. • Sensitization of consumers and businesses regarding their rights and obligations under relevant legislation. • Undertaking research studies and using appropriate analytical tools to identify abuse of dominance and market informed decisions. ZAMBIA
104 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE 5. Cartels To identify, prevent and eliminate the formation of cartels. 6. Hoarding of Products shortage in the supply of products aimed at increasing the price. 7. Product Safety To ensure that consumers are not exposed to unsafe products. 8. Defective and Sub-Standard Products To ensure that consumers are not exposed to defective and sub-standard products. 9. Unconscionable Conduct To protect consumers and businesses from unreasonable and/or unfair business transactions that go against good conscience. 10. Misleading and Deceptive Conduct To protect consumers from misleading and deceptive conduct by manufacturers and traders. 11. Warranties and Guarantees To ensure that consumers are provided with reasonable and enforceable terms for warranties and guarantees. • Undertake periodic research to ascertain the existence of cartels in the economy. • Expose cartels to the public (name and shame). • Relevant authority to establish close relationships with competition authorities in other countries and collaborate in investigation and prosecution of cartels. • and investigations. • Establish a mechanism to encourage informers and provide for their protection. • Put in place enforcement mechanisms that will deter persons from cartelistic behaviour such as stiffer penalties. • Assess reasons for market shortages as and when they arise. • Establish a surveillance mechanism with other relevant public and private sector organizations. • Put in place adequate enforcement mechanisms that will deter the persons from hoarding products. • To ensure that the products supplied are subjected to mandatory or voluntary testing by relevant authorities. • Expose defaulting companies to the public (name and shame). • Put in place adequate enforcement mechanisms that will deter the persons from supplying unsafe products. • Encourage relevant authorities to cooperate with counterparts in originating countries of unsafe products. • To ensure that the products supplied in the Zambian market are subjected to acceptable standards and testing recognized by Zambian laws. • Expose defaulting companies to the public (name and shame). • Put in place enforcement mechanisms that will deter the persons from supplying defective and sub-standard products. • Put in a framework for cooperation with counterparts in originating countries of unsafe products. • Promote ethical business practices. • Put in place enforcement mechanisms that will deter person from engaging in unconscionable conduct. • Compel manufacturers and suppliers to provide adequate and necessary product information through legal provisions. • Promote ethical business practices. • Put in place enforcement mechanisms that will deter the persons from misleading and deceptive conduct. • Encourage manufacturers and suppliers to provide adequate and necessary information about their commercial practices. • Put in place minimum benchmark standards for product warranties and guarantees. • Compel manufacturers and suppliers to provide adequate and necessary warranties and guarantees through legal provisions.
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UNITED NATIONS CONFERENCE ON TRADE
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UNITUNITED NATIONS CONFERENCE ON TR
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2 VOLUNTARY PEER REVIEW OF CLP: A T
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COMPARATIVE ASSESMENT COMPARATIVE A
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PREFACE This comparative assessment
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PREFACE agreements. . In the United
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PREFACE Finally in the United Repub
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PREFACE be set at a percentage of t
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PREFACE the market price but constr
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PREFACE (d) the extent to which the
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PREFACE pendence is maintained and
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PREFACE the effectiveness of the or
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PREFACE practical solutions, for ex
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PREFACE In addition to formal coope
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ZIMBABWE FULL REPORT ZIMBABWE
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ZIMBABWE TABLE OF CONTENTS PREFACE
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ZIMBABWE This report is part of the
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ZIMBABWE With the growing political
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ZIMBABWE of restrictive practices,
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ZIMBABWE competition authorities do
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ZIMBABWE divided according to geogr
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ZIMBABWE The Commission in 2006 whi
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ZIMBABWE to take care of themselves
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ZIMBABWE (under Section 9); basical
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ZIMBABWE Full scale investigation i
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ZIMBABWE (ii) to produce any book,
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ZIMBABWE The fact that CTC has a co
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ZIMBABWE tariat of technocrats, who
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ZIMBABWE Table 2: Number of Competi
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ZIMBABWE Regarding the handling of
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ZIMBABWE (Emphasis by the author) b
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ZIMBABWE Section 5 (1) (f) that pro
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ZIMBABWE Whilst the arguments can b
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ZIMBABWE Anti competitive agreement
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ZIMBABWE by conducting its case det
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