The Need to Ensure Compliance with the Regulations

The risks associated with being a party to an anti-competitive agreement or abusing a dominant position are serious. In addition to the consequences highlighted in the foregoing, one other major risk to a company is the disruption and damage to its reputation which may arise from lengthy investigations or subsequent litigation from customers, competitors and consumers. Noncompliance with the Regulations, therefore, becomes a serious governance issue which may put off would-be investors in the company and even lead to the exit of current shareholders.

Cognizant of the severe consequences of non-compliance with the Regulations, businesses should regularly review or inquire whether the company’s business practices and agreements comply with the Regulations. It is important, therefore, to promote an understanding amongst employees as to what type of behaviour is and is not permissible under competition law.

One practical way to promote an understanding of competition law amongst employees is for a company to devise and actively implement a competition compliance policy that is specifically tailored to that company. Not only does this minimise the risk of being non-compliant in the first place, but if a company is investigated for anti-competitive behaviour, evidence of a competition compliance policy may be taken into account by the Commission in determining the fine.

If you know of any anti-competitive agreement, please file a complaint with COMESA Competition Commission.