THE World Bank’s update on the South African
economy highlights anticompetitive behaviour by industrywide cartels as
a major impediment to economic growth and poverty alleviation. It notes
the role competition authorities play in breaking up cartels, which
serve the interests of large players dominating their markets and cosy
supply chains favouring long-standing supplier relationships.
The
bank found that more competition reduces input costs and improves
productivity, creating space for lower prices to consumers. But while
the Competition Commission, Competition Tribunal and appeals court all
serve a purpose, on their own they cannot tackle the causes of
anti-competitive behaviour.
