Competition Law at Mozambique
Here is a detailed overview of Competition Law in Mozambique:
Competition Law in Mozambique
1. Legal Framework
The primary legislation governing competition in Mozambique is Law No. 10/2013 of April 11, 2013 (the Competition Law).
It is complemented by Decree No. 97/2014, which sets out its regulations.
The objective is to promote and defend competition, prevent and punish anti-competitive practices, and ensure efficient market functioning.
2. Regulator
The main regulatory body is the Autoridade Reguladora da Concorrência (ARC), or Competition Regulatory Authority, established by Decree No. 37/2014.
The ARC is responsible for investigating anti-competitive conduct, reviewing mergers, and promoting competition policy.
3. Key Provisions
Anti-competitive agreements: Prohibits horizontal and vertical agreements that restrict competition, such as cartels, price-fixing, and exclusive distribution agreements.
Abuse of dominant position: Companies with market dominance are prohibited from engaging in conduct that limits competition (e.g., predatory pricing, refusal to deal).
Merger control: Mergers, acquisitions, and joint ventures that meet specific thresholds must be notified to the ARC for review and approval.
State-owned enterprises and public sector: These entities are also subject to the competition rules, though some exceptions may apply.
4. Enforcement and Penalties
The ARC has broad powers to investigate, including requesting documents and conducting inspections.
It can impose administrative fines of up to 5% of the turnover for companies involved in anti-competitive practices.
Remedies may include behavioral or structural changes (e.g., divestments).
5. Appeals
Decisions of the ARC can be challenged before the Administrative Tribunal of Mozambique.
6. Regional and International Context
Mozambique is a member of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).
Certain mergers and practices may also fall under COMESA competition regulations if they have cross-border effects within member states.
Would you like to go deeper into:
Merger notification thresholds and process?
A case example of enforcement by Mozambique's ARC?
How Mozambique’s law interacts with COMESA rules?
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