The Competition Commission has shifted its focus from mergers and acquisitions to a greater focus on enforcement and developing prioritised sectors, such as food, agroprocessing and forestry, infrastructure and construction, intermediate industrial products and financial services.

This, says the Commission’s strategy and stakeholder relations manager, Nandisile Mokoena, has brought about a number of corporate leniency applications, which the Commission is also investigating, helping it to detect and uncover more cartels in the South African market.

The corporate leniency policy (CLP) offers a cartel member the opportunity to disclose information on a cartel in exchange for immunity from prosecution and administrative fines.

Immunity is only available to the first cartel member that gives full and complete information to the Commission. In terms of the leniency policy, the Commission has a marker system, in which firms can ‘mark’ their places in a queue of leniency applicants and, should other cartel members wish to divulge information on their involvement in the same cartel, the Commission will encourage such cooperation outside the scope of the CLP, which can eventually result in a reduced fine to be paid in a settlement agreement.

“With the introduction of the leniency policy, in 2004, we have seen a lot of companies come forward, wanting to comply with the leniency applications, sending us draft leniency programmes and requesting comment on the company’s leniency programme. We have also done a study on the growth of competition law departments in law firms and found that, since the amendment, the number of these departments have doubled,” Mokoena explains.

Meanwhile, there is a signifi- cant difference between the Competition Commission and the Competition Tribunal, says Mokoena.

“The difference between the two bodies lies within their purpose. The Commission is an investigative body, and should we be informed about cartels, price fixing and competition breaches in different industries, we explore and investigate these accusations,” she explains.

With the conclusion of its investigation and if the Com-mission believes the Act has been contravened, the Com-mission then refers the case to the Competition Tribunal for a court order against the firms involved.

Further, the Commission also offers an advisory service to ensure that regulated firms understand the Act, its interpre- tation and application in the firms’ operations. It reports that the issues raised are becoming more complex.

Mokoena adds that the Com-mission is also increasing its manpower for the investigation of cases.