a tripartite report - Unctad

TANZANIA
in a dominant position and the particular conduct is anticompetitive due to misuse of that dominant position.
Misuse of dominance positions include practices like excessive pricing, price discrimination, refusal to supply,
tying practices, price predation, exclusive conduct and other barriers to market entry.
The Commission would like to provide an elaboration of some of these practices as follows:
in a fully competitive market.
the same market.
forcing its customers to buy at a higher price or under conditions favourable to it.
price for its use (for example a ship docks charging higher prices for ship owners), and second, through
“portfolio power”. Under portfolio power, the large supplier selling to the retailer has the power of offering
the retailer his full range of products and the retailer is then forced to make few purchases from
other suppliers. It is likely that if the other suppliers are small they may be forced out of the market
altogether.
After the competitors have lowered their prices and incurred losses or even closed their businesses as
The foregoing listing is not exhaustive, and debatable
as it is not inscribed in the law or in any of the
Commission’s publicly accessible guidelines.
2.3.3 Merger control
The rationale for merger control has been widely
endorsed through competition law, and the FCA
captures merger control as well. Several academicians
and scholars have addressed the issue of
merger control, which has been rightly regarded to
have several aims. The core purpose is understood
to generally be thought that its core purpose is
to ensure that mergers do not jeopardize conditions
for competition. Should the focus of merger
policy be on preserving competition, protecting
On the other hand, are there situations where
competition? Is it ever possible that economic ef-
53 .
The legal basis for the Tanzanian merger control
system is contained in Sections 11 and 13 FCA
which are complemented by merger guidelines
vided
for by Section 2 FCA and reads as follows:
53
“merger” means an acquisition of shares, a business
or other assets, whether inside or outside of [the
United Republic of] Tanzania, resulting in the change
of control of a business, part of a business, or an asset
of a business in[the United Republic of] Tanzania.:
In this context, the Merger Guidelines by the Commission
distinguish three types of mergers that
it would look at i.e. horizontal, vertical and conglomerate
mergers. 54
Section 11(1) of the Act brings out the substantive
test for merger review which reads as follows:
“A merger is prohibited if it creates or strengthens a
position of dominance in a market”. This appears to
take the approach of a structural paradigm as opposed
to a behavioural one for mergers. As mentioned
previously, the dominance test is laid under
Section 5(6) as follows:
A person has a dominant position in a market if both
(a) and (b) apply:
(a)
materially restrain or reduce competition in
(b) the person’s share of the relevant market
exceeds 35 per cent.
The above (a) and (b) must be mutually inclusive.
TANZANIA