State-owned entities and the impact on competition law

Abstract

The South African Competition Act 89 of 1998, as amended addresses an array of principles and issues surrounding competition policy. However, it has become apparent that the Act remains silent regarding state-aid and moreover state owned entities in relation to competition law. This paper analyses the development of competition policy within South Africa and the origins of state-owned entities and state aid. The aim of this paper is to evaluate whether state-owned entities encourage, strengthen or diminish the concept and purpose of competition. Furthermore, a comparative analysis will be done between South Africa and current and previous Member States of the European Union in an attempt to decipher whether state-owned entities are efficiently regulated and utilised to promote the objectives set out in the Competition Act. Lastly, this study will include possible recommendations which are on par with global trends or models as to how state-owned entities and state aid should be administered within the Republic.