National Assembly passes contentious Competition Amendment Bill
CAPE TOWN - The National Assembly has passed the contentious Competition Amendment Bill.
The bill was introduced in July as a “prioritised bill” and aims to tackle high levels of business concentration and collusion by dominant firms.
The legislation also proposes an increase in the maximum administrative penalty for companies from 10% of a company’s annual turnover in South Africa to 25%.
While the African National Congress (ANC) has welcomed the passing of the bill, opposition parties have voiced their opposition to the legislation saying it will undermine growth and jobs.
Democratic Alliance Member of Parliament Michael Cardo says the bill will also deter foreign investment.
“The Competition Amendment Bill is bad for the economy; It will undermine growth and jobs, it will introduce regulatory uncertainty and increase the cost of doing business.”
Congress of the People parliamentarian Deidre Carter has questioned the new powers to be given to the Competition Commission under the new legislation.
“It would appear the power of the competition authorities has been abused for nefarious, fractional party-political ends.”
The bill will now be sent to the National Council of Provinces for concurrence before it is signed into law.
(Edited by Zamangwane Shange)