a tripartite report - Unctad
a tripartite report - Unctad a tripartite report - Unctad
TANZANIA shall be prohibited for a period of 90 days, which can be extended for a period not exceeding 30 days. A merger supplying such information as the Commis- Any person who intentionally or negligently acts in contravention of these provisions commits an offence under the FAC. Further details on the merger review procedure are provided below. Section 11(6) provides immunity to a person who does not intentionally or negligently act in contra- Commission does not have guidelines as to how to determine such instances of non-intentional and non-negligent acts. Comprehensive rules of mergers are gazetted in the ‘Fair Competition Commission Procedure Rules, 2010”. Exemptions to Mergers Mergers that are likely to create or strengthen a dominant position can be exempted according to Section 13 of the Act if there is an overriding public interest. Not all mergers are premised on anticompetitive conduct. To the contrary, there are vide goods and services cheaply to the consumer. Such mergers in industrialized countries like Europe are exempted 58 … The FCC may, upon the application of a party to a merger, grant such exemption for that merger, either unconditionally or subject to such conditions the following ways: production or distribution; (ii) by promoting technical or economic progress; the allocation of resources; or (iv) by protecting the environment and the merger: (v) prevents, restrains or distorts competition no more than is reasonably necessary to 55 the merger outweigh the detriments caused by preventing, restraining or distorting competition; and (vii) in the case of a merger resulting in the change of control of a business, the business faces actual or imminent least anticompetitive alternative use of the assets of the business. When granting an exemption under this section from the date the exemption is granted, as the period of the exemption. The FCC may revoke or vary an exemption at any time during the period since the grant of the exemption have materially changed or the exemption was granted wholly or partly on the basis of false, misleading or incomplete information. Cross-border mergers Paragraph 2.4 of the Merger Guidelines, “crossborder mergers” are introduced as ‘a transaction longing to or registered in two different countries are combined to establish a new legal entity’. As the United Republic of Tanzania is a partner State of the East African Community, which has a supra national “East African Competition Act, 2006”. This Act provides that all competition issues with crossborder effect are subject of the jurisdiction of the EAC. Under Article 4 of the EAC Competition Law, it states that “the Act shall apply to all economic activities and sectors having a cross-border effect.” 2.3.4 Consumer Protection The legislation has comprehensive consumer protection provisions, which appear to be inspired from the Trade Practices Act 1974 of Australia. Reading through the law, it shows that there are only six sections (in one part) dedicated to the core competition restrictive business practices out of a total of 40 sections in 7 parts. Part III to Part IX include provisions on consumer protection relating to misleading and deceptive conduct, unfair business practices, unconscionable conduct, implied conditions in consumer contracts (the largest TANZANIA
56 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE portion, with 10 Sections), manufacturer’s obligations, product safety, and product recall. The consumer protection provisions are quite expansive and therefore would require a separate comprehensive review. For purposes of the peer review of competition law and policy of the United Republic of Tanzania, this report is restricted to reviewing the counterfeit products vis-à-vis competition on one hand, and counterfeit products and consumers on the other, see part 3 of the present report. 2.4 Procedural Issues 2.4.1 Investigation of anticompetitive agreements As regards the investigation of potentially anticompetitive agreements, two scenarios need to be distinguished: (i) the parties to the agreement apply for an exemption according to Section 12 (1) FCA, or (ii) in absence of such application the Commission has intelligence about a potentially anticompetitive agreement. With respect to the latter case, Section 69 of the Act stipulates that the FCC may initiate an investigation against a prohibited practice on its own initiative i.e. In addition to this, any person may submit information in any form or in a prescribed form, which is prescribed under Form FCC1 of the FCC Procedural Rules (FC- CPR). There is no clarity as to what the difference is between “information” to be submitted in any manner or form or a “complaint” to be submitted in Form FCC1. This form is a public record but por- of two options for the complainant, more so stating “in any manner or form” affords the majority of Tanzanians to lodge complaints with the Authority. Lodging a complaint is further, a free process for the complainant. Under Rule 10(2) and (3) of the FCCPR, the Department of Investigation then reviews the complaint to determine whether: (a) the case falls under the Act (b) there are material effects on competition (c) it is worth devoting investigation resources (d) the complaint, in whole or in part, is before any court, tribunal, arbitration, etc. case or not lies with the FCC Director-General, who also sits as a voting member of the FCC. Where the complaint is not entertained, the complainant is furnished with the reasons, which decision may be referred to the Commission adjudicative wing if the complainant so desires. The Investigation department carries out investi- ings to the Director-General. Where the decision is to enforce, the decision shall be made by the adjudication of Commission members. Through, inter alia, Rule 58 of the FCCPR, persons have a right to be heard before certain determinations are made. In terms of timelines for each step, they are largely ad hoc and depend on the gravity of the case. investigation and adjudication process, where the Director-General of the FCC may be the initiator/approver of an investigation, preside over the administration of the investigation, receive and amend the investigation reports accordingly, and then sit together with the other Commission members and be part of the adjudicative process. This may be a possible case of constitutional challenge and would require legal review. 2.4.2 Determination of exemptions Under Part VI, Rule 59 of the FCCPR, a person may apply for exemption of an agreement or all agreements falling within a class of agreements under ing an application in Form FCC.3 set out in the First Schedule to these Rules. Upon receiving an application in subrule (1). Before granting or revoking an exemption under section 12 of the Act, the FCC- (a) shall give a notice in the Gazette of the application for an exemption, or of its intention to revoke that exemption; (b) shall give interested parties thirty working days from the date of that notice to make written representations as to why the exemption should not be granted or revoked; (c) may request further information from any person who submits a representation in response to a notice published under (a) and (d) may conduct an investigation into the agreement or class of agreements concerned.
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TANZANIA<br />
shall be prohibited for a period of 90 days, which can<br />
be extended for a period not exceeding 30 days. A<br />
<br />
<br />
<br />
merger supplying such information as the Commis-<br />
<br />
Any person who intentionally or negligently acts in<br />
contravention of these provisions commits an offence<br />
under the FAC. Further details on the merger<br />
review procedure are provided below.<br />
Section 11(6) provides immunity to a person who<br />
does not intentionally or negligently act in contra-<br />
<br />
Commission does not have guidelines as to how<br />
to determine such instances of non-intentional<br />
and non-negligent acts. Comprehensive rules of<br />
<br />
mergers are gazetted in the ‘Fair Competition<br />
Commission Procedure Rules, 2010”.<br />
Exemptions to Mergers<br />
Mergers that are likely to create or strengthen a<br />
dominant position can be exempted according<br />
to Section 13 of the Act if there is an overriding<br />
public interest. Not all mergers are premised on<br />
anticompetitive conduct. To the contrary, there are<br />
vide<br />
goods and services cheaply to the consumer.<br />
Such mergers in industrialized countries like Europe<br />
are exempted 58 …<br />
The FCC may, upon the application of a party to a<br />
merger, grant such exemption for that merger, either<br />
unconditionally or subject to such conditions<br />
<br />
<br />
the following ways:<br />
<br />
production or distribution;<br />
(ii) by promoting technical or economic<br />
progress;<br />
<br />
the allocation of resources; or<br />
(iv) by protecting the environment and the<br />
merger:<br />
(v) prevents, restrains or distorts competition<br />
no more than is reasonably necessary to<br />
<br />
55<br />
<br />
the merger outweigh the detriments<br />
caused by preventing, restraining or<br />
distorting competition; and<br />
(vii) in the case of a merger resulting in<br />
the change of control of a business,<br />
the business faces actual or imminent<br />
<br />
least anticompetitive alternative use of<br />
the assets of the business.<br />
When granting an exemption under this section<br />
<br />
from the date the exemption is granted, as the<br />
period of the exemption. The FCC may revoke or<br />
vary an exemption at any time during the period<br />
<br />
since the grant of the exemption have materially<br />
changed or the exemption was granted wholly or<br />
partly on the basis of false, misleading or incomplete<br />
information.<br />
Cross-border mergers<br />
Paragraph 2.4 of the Merger Guidelines, “crossborder<br />
mergers” are introduced as ‘a transaction<br />
longing<br />
to or registered in two different countries<br />
are combined to establish a new legal entity’. As<br />
the United Republic of Tanzania is a partner State<br />
of the East African Community, which has a supra<br />
national “East African Competition Act, 2006”. This<br />
Act provides that all competition issues with crossborder<br />
effect are subject of the jurisdiction of the<br />
EAC. Under Article 4 of the EAC Competition Law,<br />
it states that “the Act shall apply to all economic<br />
activities and sectors having a cross-border effect.”<br />
2.3.4 Consumer Protection<br />
The legislation has comprehensive consumer protection<br />
provisions, which appear to be inspired<br />
from the Trade Practices Act 1974 of Australia.<br />
Reading through the law, it shows that there are<br />
only six sections (in one part) dedicated to the<br />
core competition restrictive business practices out<br />
of a total of 40 sections in 7 parts. Part III to Part IX<br />
include provisions on consumer protection relating<br />
to misleading and deceptive conduct, unfair<br />
business practices, unconscionable conduct, implied<br />
conditions in consumer contracts (the largest<br />
TANZANIA