The role of competition law in promoting small and medium enterprises

Abstract

The purpose of the Competition Act 89 of 1998 (the Competition Act) to a large extent supports the role of competition law in the South African law. Competition law forbids practices within the competition environment which are anti-competitive. The general purpose of the Competition Act is to promote and maintain competition in the Republic of South Africa. There are various provisions within Chapter 2 of the Competition Act which are aimed at maintaining competition. The provision of chapter 2 (e) of the Competition Act is of great importance in this research.Chapter 2 (e) provides that in order to promote and maintain competition, competition law must ensure that small and medium-size enterprises have an equitable opportunity to participate in the economy. This thesis will give an in-depth analysis on three main provisions of the Act which create an environment which enables small and medium-sized enterprises to participate in the economy. The exemption clause of the Competition Act makes provision for small and medium-sized enterprises to apply to the Competition Commission to be exempted from the application of the Competition Act if they can show that the practice that they engage on even though it may be prohibited, it contribute to the promotion of the ability of small business or firms controlled or owned by historically disadvantaged persons, to become competitive. Under this chapter the exemption clause will be analysed and instances in which exemption can be grated will be looked at. The Competition Act also affords protection to small and medium-sized enterprises under merger regulation. This dissertation will therefore investigate how competition law enhances and promotes small and medium-sized enterprises and lastly the dissertation will look at the role of competition law under abuse of dominance as to how it protect and promote Small and medium-sized enterprises. The focus will only be on the South African perspective and the finally there will be a conclusion.