Commissioner Adv Menzi Simelane, speaking at an 'open day' hosted by the commission at its Pretoria offices, commented that mergers and acquisitions would not be allowed simply on the grounds that they would assist in the growth of BEE entrants.
“A black monopoly is the same as a white monopoly,” he stated, adding that a company's empowerment status should not matter in terms of its success within the market.
“A company's ability to grow should be based on the strength of its product, and less emphasis should be placed on its BEE status.”
In response to a question regarding the Competition Commission's ability to meet the deadlines of various sectors' BEE charters, many of which will require companies to possess certain empowerment criteria in the near future, Simelane explained that the body has little choice but to adhere to rules and regulations when approving deals.
“But there is no problem with our turnaround time,” he said.
In terms of fast-tracking the approval process, Simelane noted that fast-tracking is dependent on parties providing all relevant information to the commission, which will eliminate delays.
“The fast-track mechanism can only be triggered by the supply of all the necessary information. We fast-track the process whenever we can.”
Commenting on regulatory bodies and concurrency in jurisdiction between the commission and sectoral regulators, Simelane argued that each should be in a position to decide on mergers within its own sector, as long as it does not contradict the commission's competition-related rulings.
“If we approve a merger within the telecommunications sector, for instance, and Icasa (Independent Communications Authority of South Africa) does not allow it, interested parties have to take it up with Icasa,” he said.
However, in terms of competition-related issues, Simelane said he would like to see one regulatory body.
This year, he pointed out, the commission is set to study market trends within the financial services, chemicals, paper and transport sectors.
He also warned that the commission would make an important announcement about the South African glass and fertiliser industries at the end of April, but did not give further details.
The Competition Commission is currently engaging strongly with the Department of Minerals and Energy about the gas, electricity and petroleum sectors.
“It is important to engage with government. Governments often become involved in anticompetitive behaviour, especially for the sake of creating jobs,” Simelane said.
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