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Final Report - World Trade Organization

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Annexure Table 2b: Extra-territorial Jurisdiction & Cross Border Abuses<br />

UNCTAD Model Law<br />

l<br />

Not explicitly mentioned.<br />

<strong>World</strong> Bank-<br />

OECD Model Law<br />

l<br />

The law is applicable to all matters specified in having substantial effects in the<br />

country, including those, that results from acts done outside the country.<br />

India, 1969<br />

2002<br />

l<br />

l<br />

An important provision in the MRTP Act is its extra-territorial reach in respect of<br />

prohibited trade practices, a part of which is perpetrated within India. This provision<br />

had been interpreted as similar to the “effects” doctrine followed in Europe and the<br />

United States, whereby foreign firms can be prosecuted for violations of competition<br />

law that have adverse effects in the domestic jurisdiction. However, in a case the<br />

Supreme Court did not concur with the interpretation of the CA that the existing<br />

provisions allowed extra-teritorrial jurisdiction.<br />

Specific and detailed coverage of extra-teritorrial reach of the law has been provided.<br />

Pakistan<br />

l<br />

The law is silent in this regard.<br />

Sri Lanka<br />

l<br />

This aspect is not explicitly dealt with in both the 1997 and 2003 laws.<br />

Kenya<br />

l<br />

Does not address cross-border abuses and extra-territorial jurisdiction.<br />

South Africa<br />

l<br />

l<br />

l<br />

The Act applies to all economic activities within, or having effect within the Republic<br />

of South Africa.<br />

In this way, it provides for jurisdiction over mergers and for action against firms<br />

where the firms’ primary domicile is not South Africa.<br />

In practice, the Commission and Tribunal have recognised that it is difficult to oppose<br />

large international mergers that have already been approved in the USA or Europe.<br />

Tanzania<br />

l<br />

The powers are limited to the national territory and do not have extraterritorial<br />

application.<br />

Zambia<br />

l<br />

l<br />

A merger effected abroad by transnational enterprises is held to be a merger completed<br />

in Zambia if the enterprises are represented or resident in Zambia.<br />

An entity that enters into agreement as a consequence of provisions in respect to<br />

the use, licence or assignment of rights under, or existing by virtue of, any copyright,<br />

patent or trade is protected by the Act.<br />

100 w Pulling Up Our Socks

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