Competition Commission Gains More Investigation Powers with 2007 Act Amendment

A new legislation, known as Section 51B – Market Inquiries, officially empowers the Competition Commission of Mauritius (CCM) to conduct in-depth market investigations, following a significant expansion of its investigative powers under an amendment to the Competition Act 2007.

This marks a major shift in the commission’s focus from targeting specific anticompetitive behaviour to proactively addressing systemic issues affecting market competitiveness.

A Shift from Individual to Systemic Investigations

Previously, the CCM’s work was limited to probes into restrictive business practices like abuse of dominant market positions, anticompetitive mergers, and illegal cartels.

The new amendment allows the commission to delve deeper, examining structural and systemic problems that hinder healthy market competition.

Unlike traditional investigations that target a specific firm or individual, these “market inquiries” will analyse entire sectors to identify obstacles to fair competition.

These obstacles can be rooted in the market’s structure, existing regulations, or the general behaviour of businesses.

The new powers grant the commission the formal authority to collect information and engage directly with businesses, regulators, and other stakeholders.

The goal is to produce comprehensive and reliable findings that can lead to evidence-based policy recommendations or enforcement actions.

Proactive Measures to Benefit Consumers

Vipin Naugah, the Executive Director of the CCM, stated that the ability to conduct market inquiries enriches the commission’s enforcement toolkit.

He explained that it will allow the CCM to “proactively identify and address distortions in competition that do not necessarily stem from a specific anticompetitive behaviour, but from broader factors.”

Removing these barriers, he added, will help create an environment for fair competition and, as a result, offer consumers the best options on the market.

Source: Defi Media