The CCPC has imposed penalties on some entities engaged in prohibited practices, such as cartels and abuse of dominance. The penalties were as high as 10% of the entity’s annual turnover. The entities that were penalised include parties in the cement sector, in which the parties colluded to fix cement prices and were fined 10% of their annual turnover.
Yes. The CCPC had brought cases against parties in a vertical relationship for infringing the CCP Act. Examples of such cases include a case in network marketing, where the parties were enforcing a resale price of cosmetics. The parties to this case were fined 5% of their total turnover for the offence of resale price maintenance.
Exclusivity and non-compete clauses are treated in two ways:
First, parties to an exclusivity and non-compete clauses can apply to the CCPC for exemption of the clauses, pursuant to section 18 of the CCP Act. Clearance by the CCPC is granted if such transactions have public interest benefits pursuant to section 19 of the CCP Act.
Second, where parties implement non-compete and or exclusivity clauses without authorisation from the CCPC, such cases are subjected to investigation, and appropriate sanctions are meted.
Examples of implementation of exclusivity clauses that triggered an investigation and a fine, include the Zambia Football Governing Body and a Mobile Network Operator (“MNO”). The agreement gave exclusive advertising rights to the MNO as a sponsor during matches. The parties were fined and ordered to remove the exclusive clauses from the agreement
Yes. The CCPC has launched and publicised investigations on a number of entities for engaging in anticompetitive conduct. These sectors involve the cement, aquaculture, and manufacturing sectors.
The provisions under the CCP Act addressing abuse of dominance (section 16, as read with section 15) cover both, buyer and supplier power. The CCPC has not had a case involving buyer power, though such cases are likely to be handled in the event that they brought forth.
Yes. Cartel conduct is criminalised in Zambia. No criminal charges have been brought against an individual so far.