Competition Law at Mauritius
Mauritius' competition law is governed by the Competition Act 2007, enforced by the Competition Commission of Mauritius (CCM). Established in 2009, the CCM operates as an independent statutory body under the Ministry of Commerce and Consumer Protection, tasked with promoting and maintaining fair competition in the country's markets.
📜 Key Provisions of the Competition Act 2007
1. Restrictive Business Practices
The Act addresses three main types of restrictive business practices:
Collusive Agreements: Such as price-fixing, market-sharing, bid-rigging, and resale price maintenance.
Abuse of Monopoly Situations: Occurs when a dominant enterprise exploits its position to the detriment of competition.
Merger Situations: Transactions that may substantially lessen competition in any market in Mauritius.
2. Powers of the Competition Commission
The CCM has extensive powers to:
Investigate potential anti-competitive behaviors.
Issue orders and directions to cease such practices.
Impose financial penalties for violations.
Collaborate with international competition authorities.
3. Merger Control
While there is no mandatory notification requirement, the CCM reviews mergers that may substantially lessen competition. Parties involved can seek guidance from the CCM before proceeding. The Commission can block mergers or require divestments if necessary.
4. Leniency Programme
The CCM offers a leniency programme to incentivize businesses to report cartel activities. The first enterprise to provide evidence of a cartel may receive immunity from financial penalties, provided it has not initiated or coerced others into the cartel.
🏛️ Institutional Framework
Executive Director: Leads investigations and reports findings to the Commission.
Commissioners: A panel of up to five members who make strategic decisions and rulings on investigations.
🔄 Recent Developments
In August 2020, the CCM amended its merger guidelines to clarify the concept of "acquisition of control," introducing terms like material influence, de facto control, and controlling interest. These amendments aim to provide clearer guidance on what constitutes a merger situation under the Act.
The CCM actively investigates and enforces competition law. Ongoing investigations include:
Potential cartel activities among insurance companies.
Price-fixing in the pharmaceutical sector.
Abuse of monopoly by tobacco distributors.
Completed investigations have addressed issues like bid-rigging in public tenders and resale price maintenance in the textbook market
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