AEWG Panel BOS 4

THE GROWTH OF THE NAMIBIAN COMPETITION

COMMISSION

April 2015

Heinrich Mihe Gaomab IISecretary & CEO

Namibian Competition Commission (NaCC)

Presentation Outline Background The NaCC The Namibian Competition Act

Preliminary Provisions Chapter 3: Restrictive Business Practices Chapter 4: Mergers and Acquisition Offences and Penalties

Major Developments Staffing and Human Resources Skills Development Enforcement of the Competition Act Voluntary Peer Review Advocacy and Awareness

Way Forward

BACKGROUND 1/3

The NaCC The NaCC was established in terms of the Competition Act

No.2 of 2003.

Ensures enforcement of the Competition Act: Investigate anti-competitive agreements and unilateral

conducts Assess and exemption applications Analyse and approve mergers notifications

Provide advocacy Conduct research and disseminate findings to policy

makers, businesses and general public

BACKGROUND 2/3

The Namibian Competition Act-(Based on EU competition law)

Preliminary Provisions: Enhance the promotion and safeguarding of competition

in Namibia Applies to all economic activities within Namibia or

having an effect in Namibia

Chapter 3: Restrictive Business Practices Part I: Restrictive Agreements, Practices and Decisions Part II: Abuse of Dominance Part III: Exemption

Chapter 4: Mergers and Acquisitions

BACKGROUND 3/3The Namibian Competition Act cont...

Offences : Hindering administration of the Act Failure to comply with summons Failure to comply with order of the Court Other offences: Interference, providing false information

and disclosing confidential information (Commission staff/members)

Penalties: Maximum of N$ 500,000 (USD42,000) or 10 year

imprisonment or both for failure to comply with order of the Court

Maximum of N$ 50,000 (USD4,200) or 3 year imprisonment for or both disclosing confidential information

Maximum N$ 20,000 (USD1,700) or 1 year imprisonment or both for any other offence as per the Act

MAJOR DEVELOPMENTS 1/6

Staffing and Human Resources: Since inception, NaCC focused on recruiting qualified

personnel in the field of economics and law Initial focus was on filling vacant positions in the NaCC NaCC employees are organized into 4 fully fledged

Divisions, besides the Office of the Chief Executive Officer and Secretary to the Commission: Corporate Services Division; Mergers & Acquisitions Division; Restrictive Business Practices Division; and the Economics & Sector Research Division.

NaCC has a staff complement of over 30 employees. Staff establishment has a total of 40 positions, and plans to

expand structure for additional positions as well staff retention strategy during the next 5 years.

MAJOR DEVELOPMENTS 2/6

Skills Development: NaCC has a staff development programme which involves

sponsorship to study University courses on competition law and policy

NaCC also offers on-the-job training on competition case investigation and analysis, attendance and participation at various international competition events, and regional training workshops on competition and consumer policy and law.

Tailor-made training on competition law and practice for professional staff are also arranged.

MAJOR DEVELOPMENTS 3/6

Enforcement of the Competition Act: Board approved a corporate leniency policy and in process to

effect its legal enforceability NaCC has developed its research programme through its

Economic and Sector research Division Prioritising sectors for market studies Market studies in Poultry, Cement and retail Advocacy and awareness of competition law

Finalised over 250 mergers & acquisition since establishment. Over 20 cases on enforcement of restrictive business practices

and abuse of dominance currently under investigation Special focus placed on improving restrictive practices and

abuse of dominance case investigations Signed MOUs with sector regulators ECB, ACC, NAMPORT,

BON, CRAN and NAMFISA

MAJOR DEVELOPMENTS 4/6

Voluntary Peer Review: NACC volunteered to be peer reviewed by UNCTAD within 5 years of

its existence after the implementation of the Competition Act No.2 of 2003.

The process resulted in a report titled “Voluntary Peer Review of Competition Law and Policy: Namibia” wherein it confirmed the progress achieved so far by NACC, but also identified areas that need further improvement.

Findings and Recommendations: Namibia has a fairly good competition law as enshrined in the

Competition Act No.2 of 2003. The law takes into account the special requirements of the

country’s economy, which are the protection and promotion of small undertakings, particularly those owned or controlled by historically disadvantaged persons (and does not only cover the 3 major competition concerns of anti-competitive agreements, abuse of dominance, and anti-competitive mergers)

MAJOR DEVELOPMENTS 5/6

Advocacy and Awareness: The visibility of NaCC is fairly good, with most of the business

undertakings in both the private and public sectors of the economy being aware of its existence

In 2012 NaCC started publishing and distributing its newsletter, the NaCC Competition NEWS, as a quarterly publication targeted at the business community and stakeholders in both private and public sectors.

Annual Competition and Consumer Week, an important advocacy forum which began in 2012, aimed at:

sensitise the public on the importance of compliance with competition law and policy,

the importance of fair competition to the economy, and also creating a platform for exchange of ideas about competition

issues and concerns. Others include radio and television programmes, to reach a large

audience.

MAJOR DEVELOPMENTS 6/6

Review of the Act: There are issues of concern in the current Act:

Lack of power to summon for information in merger cases Lack of distinction between treatment of horizontal and

vertical agreements No distinction between hardcore cartels and other softer

horizontal agreements.

Therefore, the NaCC is currently reviewing the Act to address concerns and align to applicable competition law

WAY FORWARD

As per the Act provides on regular intervals policy advise to Govt of Rep. of Namibia

The NaCC will finalise the review of the Act The NaCC will finalise and implement a staff retention strategy Continue with enhance capacity building with special focus on

in-house trainings Develop a regularly updated information database Implementation of the Corporate Leniency Policy Improve coordination with sector regulators The NaCC will continue to develop and publish various

guidelines with regards to Mergers and Acquisitions, RBP & abuse of dominance

Improve NaCC’s organizational structure

THANK YOU