There are proposed amendments to the Competition and Consumer Protection Act No. 24 of 2010 (“CCP Act”) that are yet to be finalised. Some of the key proposed changes to the CCP Act include:
- criminal sanctions being repealed and replaced with administrative sanctions;
- granting the Competition and Consumer Protection Tribunal (“CCP Tribunal”), as an appellant body, more power for enforceability over mandatory orders, making the collection of levied fines easier; providing for sanctions for natural persons; and
- recognising the COMESA Competition Rules and Regulations.
Besides the current guidelines, they are no new guidelines that have been developed. However, the Fines Guidelines have been amended. The Fines Guidelines set forth the manner in which appropriate fines to be imposed by the Competition and Consumer Protection Commission (“CCPC”) will be determined. Imposition of fines are administrative actions taken by the CCPC to address a violation of the CCP Act. The Fines Guidelines describe the principles that the CCPC will follow in imposing administrative fines. Some key elements of the Fines Guidelines are as follows:
- provision for aggravating and mitigating factors that the CCPC will consider in assessing the amount of the financial fine(s) to be imposed;
- the offences punishable by administrative fines under the CCP Act; and
- the steps to be followed in determining an administrative fine.
| PROVISIONS FOR MARKET INQUIRIES | INITIATED MARKET INQUIRIES | PLANS TO INITIATE MARKET INQUIRIES |
| Part V of the CCP Act makes provision for Market inquiries. |
The CCPC initiated a market inquiry in the agriculture sector for dairy products. The market inquiry was based on the vertical chain between the producers of dairy products and cattle farmers. |
The CCPC has plans to initiate market inquiries in the following sectors:
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Yes.
Education Sector
The CCPC has expressed concern over the practice of tying school supplies such as uniforms, books, and other supplies to securing a place for learning. This is happening at all levels of education. These being primary, secondary and tertiary (gowns tied to graduation) levels of education.
Beverages Sector
The CCPC has placed recall notices on several products after their manufacturers issued cautionary health problems. The recalls have largely affected the retail sector.
Yes. The CCPC has identified specific sectors for the purposes of competition law enforcement. Some of these sectors include:
- Information Communications and Technology;
- Agriculture;
- Manufacturing;
- Construction; and
- Financial.
Yes. In 2020, the CCPC conducted dawn raids on cement companies.
Dawn raids are conducted by the CCPC through authorised inspectors who may be other regulators. The CCPC obtains search warrants from a Court, which is used during a dawn raid. The CCPC also conducts surveillances to assess on the possible risks involved in the dawn raid.
The CCPC has not introduced any new regulations. However, the following measures were implemented:
- electronic filings of complaints and merger notifications;
- online meetings and online hearings to reduce contact; and
- submissions to amend legislation relating COVID-19.
Yes. However, these actions have not been specifically in response to COVID-19.
No. The CCPC are not price regulators and in a recent case the CCP Tribunal declined to approve a mandatory order, which would have the effect of fixing cement prices.
No.
Telecommunications Sector
The sector only has three players namely Airtel, MTN and Zamtel.
Hydro power electricity Sector
The supply of hydro power electricity is held by a dominant firm (ZESCO) holding about 89.60% of the market share.
Agriculture (Sugar) Sector
The Zambia sugar industry is dominated by three sugar milling companies, namely Zambia Sugar Plc, Kafue Sugar (Consolidated Farming Ltd) and Kalungwishi Kasama Sugar.