functions of the competition commission as per the competition act of 1998. south africa

On this page, we discuss any four functions of the competition commission as per the Competition Act of 1998.

The Competition Commission of South Africa was established through the Competition Act of 1998, with the purpose of promoting and maintaining competition in South Africa to achieve several key economic goals. The Act has been instrumental in stimulating healthy economic activity and protecting consumer interests. Below, we explore the functions of the Competition Commission in detail.

The SIX Functions of the Competition Commission as Per the Competition Act of 1998, South Africa

Facilitating Fair Competition

The primary function of the Competition Commission is to promote and maintain fair competition in South Africa’s economic sphere. It does this by implementing measures to prevent anti-competitive business practices, which could be harmful to other businesses or consumers. These practices include price-fixing, market division, and collusive tendering, all of which can stifle competition and lead to monopolistic or oligopolistic market structures.

Investigating Anti-competitive Conduct

Under the Competition Act, the Commission has the power to investigate complaints of anti-competitive behavior. Upon receiving a complaint or through its own initiative, the Commission can launch investigations into alleged breaches of the Act, gathering evidence and evaluating whether there has been a violation.

Regulation of Mergers and Acquisitions

Another important function of the Competition Commission is the regulation of mergers and acquisitions. These business activities can impact the competitive balance in various sectors of the economy, and it falls to the Commission to scrutinize such transactions. The aim is to prevent the creation of market dominance, which could lead to anti-competitive practices.

Enforcement and Remedial Actions

When anti-competitive conduct is discovered, the Commission has the authority to take enforcement actions. This may include penalties, cease and desist orders, or requiring companies to alter their practices. It also has the power to recommend remedial actions to the Competition Tribunal.

Advocacy and Education

The Competition Commission also plays an important role in educating businesses and the public about competition law and policy. The Commission does this through workshops, conferences, and publications, with the goal of fostering a culture of competition.

Promoting Public Interest

The Commission has a broad mandate to promote the public interest, particularly relating to small businesses and historically disadvantaged individuals. It’s tasked with ensuring that these parties can effectively participate in the economy and that their interests are protected in competition matters.

Video: Impact of the South African Competition Act on disadvantaged individuals in transactions


The Competition Commission, as defined by the Competition Act of 1998, plays a crucial role in maintaining and promoting fair competition in the South African economy. Its functions range from investigating and enforcing against anti-competitive behavior, to regulating mergers, and advocating for competitive practices and principles. Through these functions, the Commission seeks to foster a competitive and inclusive economic environment that benefits all South African citizens.

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