1. The Competition Commission Presentation to the Parliamentary Portfolio Committee on Trade and Industry 8 November 2006

2. Activities of the Competition Commission Prosecution of anti-competitive behaviour Merger control Advocacy

3. Enforcement Complaints105 Non-referred74 Under investigation134 Consent agreements8 Referred6

4. Administrative penalties (1) Settlement agreements - motor vehicle cases General Motors, Daimler, Nissan, Volkswagen, Citroen:  Minimum resale price maintenance  Penalties from R150 000 to R12 million Subaru and BMW:  Collusion: fixing prices, trading conditions  Penalty Subaru R500 000 & BMW R 8million

5. Administrative penalties (2) South African Airways (SAA) Litigation in Tribunal  Abuse of Dominance, travel agents’ incentives (Nationwide complaint): R45 million Settlement agreements:  Collusion, code sharing with Lufthansa: R20 million  Collusion, fuel levies with SA -Airlink, -Express,Comair: R20 million  Abuse of Dominance, travel agents’ incentives (Comair complaint): R15 million

6. Mergers and acquisitions Resource intensive (30% of CC funds) 31% increase in merger notifications in 2005/06 Average turnaround time = approx. 30 days

7. Merger notifications

8. Mergers by sectors

9. Mergers by type

10. Prohibited mergers 4 out of 394 Eyethu/Ultra Registrars small merger, abandoned Sasol/Engen large merger, prohibited by Tribunal Foskor/Sasol’s phosphoric acid business large merger, abandoned Medicross/Prime Cure large merger, prohibited by Tribunal, allowed by CAC

11. Conditional approvals 14 out of 394 large merger, structural conditions AP Moller-Maersk/Royal P&O Nedlloyd NV intermediate merger, behavioural conditions IntelSat/PanAmSat large merger, employment related conditions Tiger Bands/Ashton Canning

12. Policy and Research Research reports:  Agricultural co-operatives  Maize market Commented on:  Electronic Communications Bill  2 ICASA discussion documents  Electricity Regulation Bill  Consumer Protection Bill  Companies Amendment Bill International Competition Network

13. Advocacy FAIS ombud’s referral: Changes to the Short Term Insurance Act - “untying” insurance and bond Pension Funds Adjudicator’s ruling on switching retirement annuity funds Postal Regulator’s competition guidelines Comments on the MIDP

14. The banking inquiry National Treasury research Competition Commission research Market transparency Voluntary submissions Public hearings Recommendations on:  access to payment system  bank charges

15. Employment equity AfricanIndianColouredWhiteTotal Male28231245 Female19331035 Total47562280

16. Lawyers and economists DivisionsEconomistsLawyers Mergers43 E and E312 P and R60 Legal07 Commissioner’s01 Compliance04 Total1327 Total staff 2005/2006 = 80

17. Way forward Increase staff morale and motivation Align structure and work processes with strategy Importance of approach and methodology Knowledge management Communication and advocacy