Local firms learn more about competition laws |09 April 2012

This was during a recent meeting at the Care House with the Fair Trading Commission and Common Market for Eastern and Southern Africa (Comesa) chief executive George Lipimile.

The Fair Competition Act was enacted in 2009 and became operational in April 2010. The Fair Trading Commission held several sessions with various business groups between February and April 2010, educating them about the restrictive practices in the Act and the need to guard against abuse of dominant position.

The Act was passed by the National Assembly after the liberalisation of the local economy in November 2008, to create a level playing field so all businesses – irrespective of size and market power – could flourish.

Mr Lipimile explained that the Fair Competition Act does not prevent businesses from enjoying a dominant position. But the firms that abuse this dominance will feel the force of this law.  

With the Comesa competition law soon to become a reality and with most countries in the region, like Seychelles, Mauritius, South Africa and Kenya, already having their own competition laws, Mr Lipimile said businesses must rise to the challenges and opportunities ahead.  

He said the competition law is not a Seychelles invention but is the law governing business conduct almost worldwide at present.  

Mr Lipimile said the objective of this law is not to frustrate business but to encourage competition on the market, spur innovation and ultimately ensure consumer welfare. 

Together with Dr Hassan QaQaya from the United Nations Conference on Trade and Development, and Oliver Josie from the Competition Commission of South Africa, Mr Lipimile ran a workshop – supported by the United Nations Conference on Trade and Development – for Fair Trading Commission board of commissioners, staff and key players of Seychelles’ economy. The induction course was based on institutional and organisational aspects of competition law enforcement as well as intermediate training on investigative procedures and case-handling.

Jean Ladouceur