Competition Law at Botswana
Sure! Here’s an overview of Competition Law in Botswana:
Competition Law in Botswana
Legal Framework
The key legislation governing competition in Botswana is the Competition Act, 2018, which came into force in 2020.
It established the Competition Authority of Botswana (CAB), the independent regulator responsible for enforcing competition law.
Key Objectives
Promote and maintain competition in markets.
Prevent anti-competitive practices.
Protect consumer welfare.
Encourage efficiency and innovation.
Main Provisions
Anti-competitive Agreements
Prohibits agreements, decisions, or concerted practices between businesses that prevent, restrict, or distort competition.
Includes price fixing, market sharing, bid rigging, and limiting production or supply.
Abuse of Dominant Position
Prevents firms with significant market power from abusing their position.
Examples of abuse include predatory pricing, refusal to deal, exclusive dealing, and tying arrangements.
Merger Control
Requires prior notification and approval of mergers or acquisitions that meet defined turnover or asset thresholds.
The Competition Authority reviews mergers to assess if they substantially lessen competition.
Consumer Protection
The Act also links with consumer protection goals, ensuring businesses do not engage in unfair trade practices.
Enforcement and Penalties
The Competition Authority has investigative powers including the ability to conduct dawn raids.
It can impose administrative penalties, including fines up to 10% of annual turnover for breaches.
Orders to cease anti-competitive conduct can be issued.
Appeals can be made to the Competition Tribunal.
Institutional Framework
Competition Authority of Botswana (CAB):
Enforces the law.
Conducts investigations.
Approves mergers.
Educates and promotes competition awareness.
Competition Tribunal:
An adjudicative body that hears appeals and decides on cases referred by CAB.
International and Regional Context
Botswana's competition law aligns with the Southern African Development Community (SADC) model law on competition.
Botswana participates in regional efforts to harmonize competition law enforcement in Southern Africa.
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