The power of the Competition and Tariff Commission to investigate restrictive practices, mergers and monopoly situations in Zimbabwe

The Competition Act [Chapter 14:28] (the Act) aims to promote and maintain competition in Zimbabwe by regulating acquisitions, anti-competitive business practice, and abuse of market power and anti-competitive mergers.

One of the main aims of the Competition and Tariff Commission (CTC) is to control restrictive trade practices, anti-competitive mergers and unfair trade practices. The intention of the legislature in enacting the Act was to protect and regulate competition in Zimbabwe, and to ensure that there are no serious competition challenges, hence the CTC having powers to investigate restrictive practices, mergers and monopoly situations in Zimbabwe.

Thus, the CTC has in terms of section 28 (1) of the Competition Act [Chapter 14:28] the power to make any investigation as it considers necessary:

1. (a) Into any restrictive practice which the Commission has reason to believe exists or may come into existence;
2. (b) In order to ascertain whether any merger has been, is being or is proposed to be made;
3. (c) In order to ascertain the nature and extent of any controlling interest that is held or may be acquired in any merger or proposed merger;
4. (d) Into any type of business agreement, arrangement, understanding or method of trading which, in the opinion of the Commission, is being or may be adopted for the purpose of or in connection with the creation or maintenance of a restrictive practice;
5. (e) Into any monopoly situation which the Commission has reason to believe exists or may come into existence.

The CTC is able to scrutinise all mergers and keep those mergers, which may create competition in check in Zimbabwe.