PARLIAMENTARY SUBMISSION: COMPETITION AMENDMENT BILL, 2018
ON 17 AUGUST 2018, THE HELEN SUZMAN FOUNDATION MADE WRITTEN SUBMISSIONS IN RESPONSE TO THE PORTFOLIO COMMITTEE ON ECONOMIC DEVELOPMENT’S (THE COMMITTEE) CALL FOR PUBLIC COMMENT ON THE COMPETITION AMENDMENT BILL, 2018 (THE BILL).
The HSF also made oral submissions on 29 August 2018 at Parliament.
The Bill published in July 2018 is the second iteration of a 2017 Bill that seeks to address high levels of concentration and the skewed ownership profile of the economy. It also attempts to enhance the administrative efficiency of the Competition Commission and Tribunal. The HSF’s submission is confined to comments relating to the newly inserted section 18A which introduces national security as a consideration for permitting large mergers by a foreign acquiring firm in South Africa.
On a reasonable interpretation of section 18A of the Bill, the process of intervening in a merger by a foreign acquiring firm will take place in the following way: A foreign acquiring firm interested in pursuing a merger in South Africa notifies a Committee (consisting of Cabinet Ministers and public officials) constituted by the President. Considering a list of national security interests gazetted by the President, the Committee can prohibit the merger, permit notification with conditions or permit notification of the merger without conditions on the grounds that the merger threatens the identified national security interests of South Africa.
The HSF’s primary concerns with this section are: