STRUCTURE AND FUNCTIONS OF

COMPETITION AGENCIES

GENERAL STRUCTURE OF CA

• CAs differ in size, structure and complexity• The structure depicts power distribution (protocol) and work flows in

the organization• These attributes depend on:

– Availability of resources (Budget allocation)– Level of a country’s economic development– Level of competition culture– Availability of expertise– Level of political support– Autonomy status and prosecutorial powers

• The structure of more advanced competition agencies e.g. EC and FTC/DOJ is more elaborate compared to CAs in developing countries

Contd….

• However, the mandate of CAs in both instances are similar.

• Their objectives are:– To prohibit RTPs– Discourage abuse of dominance and unwarranted concentrations of

economic power– Regulate mergers and acquisitions– Conduct advocacy/ education activities– Provide advice to government on competition law and policy matters

etc– Consumer Protection

- Consumer protection

STRUCTURE OF SOUTH AFRICA COMPETITION AUTHORITY

• SACC is headed by a commissioner appointed by the Minister for Trade. He is supported by 6 divisional managers namely:-M&A

-Enforcement and exemptions

-Compliance

-Policy and Research

-Legal services

-Corporate

• Two other institutions responsible for the administration of the Competition Act are the Competition Tribunal and the Competition Appeals court

• The tribunal hears all cases brought before it by the SACC, it approves large mergers, adjudicate whether parties have engaged in a prohibited practice, impose penalties and hears appeals on decisions of SACC

Structure of EC

• Headed by a DG, assisted by 3 deputies in charge of Merger & Antitrust, Operations and State Aids. These are further subdivided to provide for cartels, markets ( energy, environment, information communication and media, financial and health related markets, basic industries, manufacturing and agriculture, transport, postal and others), regional aid. R&D, innovation and risk capital, etc

Structure and role of FTC and DOJ

• Both institutions charged with enforcing antitrust laws i.e. antitrust enforcement and merger regulation.

• However DOJ has exclusive jurisdiction over criminal offences e.g. price fixing

• Competition laws include the Sherman Act of 1890, (deals with conspiracies and monopolies) Clayton Act of 1914 (M&A) and FTC Act of 1914 (unfair methods of competition)

Structure of CA in Kenya

• The Commission is headed by a Commissioner who reports to the Minister for Finance

• There are 2 deputies: Legal and Technical

• The Commission further has 2 technical divisions: M&A and Enforcement

• Other CA are the Tribunal and the High Court

Functions of Ghana’s CAThe functions of the Commission shall, inter alia, include– monitoring trading practices in the country with the purpose of ensuring fair

trade practices and of preventing restrictive trade practices;– preventing, as far as practicable, the concentration of market power and its

abuse;– regulating mergers and acquisitions in terms of approving (with or without

modifications) or disapproving them under sections 32 and 33;– ordering investigations by the Complaints Officer into alleged prohibited

practices and conduct and making prima facie conclusions based on the investigation reports;

– coordinating with a regulatory authority in terms of section 62 to harmonise the exercise of jurisdiction over competition matters within the relevant industry or sector, and ensuring consistent application of the principles of this Act;

– recommending trial and prosecution of offending parties to the Competition Tribunal;

– making available to persons engaged in business and other interested persons general information for their guidance with respect to the provisions of this Act;

– conducting research into matters dealt with by this Act;– educating the public by publishing journals and periodicals on research

findings in trade, competition and matters affecting the interest of consumers;

– making recommendations to the Minister on the competition implications of government policies;

– acting as competition advocate and creating competition culture in the markets of the Republic; and

– performing any other functions that are incidental to its specific functions.

Functions of Ghana’s CA

Functions of Kenya’s CA

• Regulation of market conduct

• Regulation of market structure

• Advocacy

• Provision of advice to Government on competition matters

• Enforcement and compliance

Thank You