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Johannesburg - President Jacob Zuma has granted formal powers to the Competition Commission to conduct market inquiries.
He signed the Competition Amendment Act in August 2009, but it did not come into effect immediately, the commission said in a statement on Monday.
Zuma had since determined that the section relating to market inquires would come into effect on April 1. A market inquiry is a formal inquiry into the general state of competition in a market for particular goods or services. Such an inquiry does not necessarily make reference to the conduct or activities of any particular named firm.
The commission would have the power to launch such a probe where it had reason to believe that any feature of a market for products or services distorted or restricted competition within that market. It could also launch an inquiry to achieve the purposes of the Competition Act, as amended. Market inquiries are considered important for promoting competition in the economy.
"The outcomes of a market inquiry may include recommendations to the minister for new or amended policy, legislation or regulations; or recommendations to other regulatory authorities in respect of competition matters."
The commission could also refer the matter to the Competition Tribunal or choose to not to take action.
Rights organisation Section27 welcomed the commission's new powers.
"The market inquiry should be conducted in an open and transparent manner and should be open to the public, while having regard to potentially sensitive information held by the various stakeholders," it said in a statement.
