Competition Law at Angola
Angola's competition law is governed by Law No. 5/18, enacted on May 10, 2018, and further regulated by Presidential Decree No. 240/18 (October 12, 2018) and Presidential Decree No. 313/18 (December 21, 2018). These regulations collectively establish a comprehensive framework for promoting fair competition within Angola's economy.
📜 Legal Framework
1. Competition Regulatory Authority (CRA)
The CRA, established by Decree No. 313/18, is an autonomous public agency responsible for enforcing competition law in Angola. It oversees market practices, investigates anti-competitive behaviors, and ensures compliance with competition regulations. The CRA has the authority to issue guidelines, conduct investigations, and impose sanctions on entities engaging in anti-competitive practices.
2. Prohibited Practices
The competition law prohibits the following anti-competitive practices:
Horizontal Agreements: Agreements between competitors that restrict competition, such as price-fixing, market-sharing, or limiting production.
Vertical Agreements: Agreements between companies at different levels of the supply chain that impose unfair conditions or restrict competition.
Abuse of Dominant Position: Actions by a company with significant market power that harm competition, including refusal to deal, predatory pricing, or imposing unfair trading conditions.
Abuse of Economic Dependence: Exploiting a business relationship where one party is economically dependent on another, leading to unfair conditions.
These practices are subject to penalties, including fines ranging from 1% to 10% of the annual turnover of the involved entities.
🔄 Merger Control
The competition law establishes a merger control regime to prevent anti-competitive concentrations:
Mandatory Notification: Certain mergers and acquisitions must be notified to the CRA before implementation.
Notification Thresholds: Transactions must be notified if they meet specific criteria, such as creating or reinforcing a market share of at least 50% or if the combined turnover exceeds certain thresholds.
Review Process: The CRA reviews notified transactions to assess their impact on market competition and may approve, conditionally approve, or prohibit them.
⚖️ Enforcement and Sanctions
The CRA has the authority to enforce competition law through:
Investigations: Conducting inquiries into suspected anti-competitive practices.
Sanctions: Imposing fines and other penalties on entities found in violation of competition law.
Interim Measures: Implementing temporary measures to prevent harm to competition during investigations.
Entities found guilty of anti-competitive practices may face significant financial penalties and other sanctions.
🌐 International Cooperation
Angola's CRA has established cooperative relationships with other competition authorities, such as the Portuguese Competition Authority (AdC), to enhance the enforcement of competition laws and share best practices.
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