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a tripartite report - Unctad

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82 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE<br />

7.0 FINDINGS AND POSSIBLE<br />

POLICY OPTIONS<br />

7.1 <br />

implementation of competition law needs to be<br />

<br />

in the law, as well as through some improvements<br />

in the legal framework. The FCC may currently be<br />

limited in effective enforcement of the FCA due<br />

to express exemptions from the application of the<br />

FCA of selected but key regulated sectors, such<br />

as telecommunications, energy (petroleum, water<br />

and gas), surface and marine transport, aviation,<br />

crop marketing boards and any other subsequent<br />

legislation thereafter. There is also a problem of restricting<br />

the enforcement of Section 8 and limiting<br />

the scope to an “agreement” without the inclusion<br />

of decisions, conduct or behaviour of actors in a<br />

market. The rule of reason approach for hard-core<br />

horizontal agreements would also require revision<br />

and alignment with the international best practices.<br />

While the law calls for punishment to Directors and<br />

shareholders of a company, there is no mechanism<br />

of how these would be dealt with under the FCA.<br />

7.2 The following recommendations are<br />

made:<br />

A. INSTITUTIONAL ISSUES AND AGENCY EFFECTIVENESS<br />

RECOMMENDATION REQUIRED ACTION RESPONSIBILITY<br />

1. Funding to the FCC and the FCT must<br />

be predictable and implementable as<br />

provided for under Section 78(c) of the FCA<br />

There must be a mandatory provision to deal with remittance of funds<br />

to the FCC and FCT and it should not be discretional.<br />

There must be an appeal process to secure the funds.<br />

2. Consumer protection NCAC replicates the advocacy functions of the Commission. Its staff<br />

and funds can be absorbed in an expanded consumer protection,<br />

advocacy and anti-counterfeit division within FCC – or make NCAC<br />

an enforcement agency for consumer protection as well as advocacy.<br />

3. Appeals to the Minister where a regulator<br />

engages in anticompetitive conduct<br />

Under Section 96(3) of the Act, the FCC is expected to appeal to the<br />

Minister where a sector regulator makes an anticompetitive decision.<br />

This appeal would better lie with the Tribunal, which would be better<br />

<br />

B. ANTI-COMPETITIVE TRADE PRACTICES<br />

Ministry/FCC<br />

Minister/FCC/NCAC<br />

FCC/Tribunal/Minister<br />

RECOMMENDATION REQUIRED ACTION RESPONSIBILITY<br />

4. Inclusion of vertical agreements in the law Amendment to the Law to include conduct such as tied selling, resale<br />

price maintenance, etc.<br />

FCC<br />

5. Enumeration of conduct to be considered Amendment to the law. In the interim, there is need to have clear FCC<br />

misuse of market power<br />

guidelines on this other than the ones contained in the merger<br />

guidelines.<br />

6. Introduce joint/combined dominance in the FCC<br />

FCA<br />

exercising dominance in a market may be cited for joint dominance.<br />

7. Introduce a new provision to deal with buyer<br />

power in the Act to address concerns raised<br />

in the agricultural sector<br />

Inclusion of buyer power FCC/Minister<br />

8. Need to have a more exhaustive list of Expansion of the list under Section 9 to include market allocation, FCC<br />

horizontal/cartel arrangements<br />

customer allocation and output restriction.<br />

9. There is need to remove the tying of intention Intention and negligence should not be of importance to cartel behav- FCC<br />

and negligence to cartel conduct under<br />

Section 9(4) of the FCA<br />

iour and therefore section 9(4) should be removed from the law.<br />

10. Issuance of Summons when Commission Summons under Section 71 should ideally be issued only when<br />

FCC<br />

wants information<br />

person/s refuse or are not able to voluntarily submit the information.

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