1. Towards a fair and efficient economy for all Quarterly report 1 April to 30 June 2010 Presentation to Parliament’s Portfolio Committee on Economic Development Commissioner Shan Ramburuth 31 August 2010

2. The work of the Commission Mandate: Competition Act  Prevent concentration through merger control  Prosecution of anti-competitive behaviour  Advocacy for pro-competitive conduct and regulations Strategic priorities  Demonstrable outcomes in the economy  Competitive environment for economic activity  High performance competition agency Operational support  HR, Finance, IT, Security Governance:  PFMA, Treasury regulations and other legislation Towards a fair and efficient economy for all 2

3. Mergers 1 April 2009 to 30 June 2010 Towards a fair and efficient economy for all 3

4. Merger control Towards a fair and efficient economy for all 4 Mergers notified56 Mergers finalised45 Mergers approved44 Mergers conditionally approved0 Mergers prohibited1 Prior implementations0 Mergers monitored20

5. The Global Merger Control Index 2010 by Centre for European law and economics Towards a fair and efficient economy for all 5

6. Enforcement 1 April 2009 to 30 June 2010 Towards a fair and efficient economy for all 6

7. Cases under investigation Towards a fair and efficient economy for all 7 Total cases under investigation166 Complaints from the public63 Complaints initiated by the Commissioner11 Complaints non-referred at screening41 Complaints non-referred after investigation8 CLP applications received23 Total CLP applications under consideration98 Site inspections and dawn raids2 Summons issued4 Complaints recommended for referral6 Exemption applications received1 (SAPIA) Exemption applications finalised1 (Airlines)

8. Prosecutions and litigation Towards a fair and efficient economy for all 8 Cases referred to the Tribunal for prosecution2 Cases being prepared for referral to the Tribunal34 Collusion cases24 Abuse of dominance/vertical restraints cases12 Consent agreements2 Cases pending before the CAC, High Court and SCA6 Cases before the Tribunal10

9. Referrals:  Computicket – exclusionary conduct relating to the provision of outsourced ticket distribution services  Fritz Pienaar Cycling-collusion in setting the wholesale and retail prices of cycles and accessories Consent agreements:  Keystone Milling – cartel conduct fixing the selling price of white maize. Administrative penalty of R6,7mill.  Masana Petroleum Solutions -cartel conduct involving directly or indirectly fixing the purchase or selling price of bitumen and bituminous products in South Africa. Administrative penalty of R13 mill. Towards a fair and efficient economy for all 9 Prosecution of cases

10. INPUTS Raw fish Animal feed Poultry feed Poultry breeding Yeast Tin plate Diesel Fertilizer Wire fencing Plastic irrigation piping Poultry Fertilizer PRODUCTION Poultry Poultry broilers Fruit STORAGE/ TRADING Grain PROCESSING/ MANUFACTURING Bread Fish Fruit Milling (maize, wheat) Fats and oils Poultry Bread Dairy Bread Dairy Bread RETAILING Supermarkets INVESTIGATIONHEARINGSETTLEMENTDECISIONAPPEAL/REVIEW Towards a fair and efficient economy for all 10 Cases in food and agro-processing

11. Towards a fair and efficient economy for all 11 Cases in construction and infrastructure INPUTS Cement Pilings Grouting Building foundations Cement Pilings Grouting Building foundations Pre-cast concrete Plastic pipes Pre-cast concrete MANUFACTURI NG Paving Glass Cables Glass Bricks DISTRIBUTION Glass RETAILING Glass CONSTRUCTION Schools Commercial buildings Housing Stadiums Road infrastructure Mine contracts CLP*/MARKERINVESTIGATIONHEARINGSETTLEMENTDECISIONAPPEAL/REVIEW

12. INPUTS Chemicals Fertilizer Scrap metal Wire Rebar Tinplate Liquid fuels eg. commercial diesel Wire Mesh Long steel Plastic pipes Fertilizer Carbon black rubber Bitumen Polymers Scrap metal Fertilizer (Nitrogenous with Sasol – Omnia and Yara still contesting) Fertilizer (Phosphoric acid) Polymers (settled with Safripol - Sasol still contesting) MANUFACTURING Flammable gases Steel Mining roof bolts Tyres Rubber compound Synthetic rubber Mining roof bolts (Aveng settled, case on going against other respondents) DISTRIBUTION Piped gas RETAILING LPG gas INVESTIGATIONHEARINGSETTLEMENTDECISIONAPPEAL/REVIEW Towards a fair and efficient economy for all 12 Cases in intermediate industrial products

13. Advisory opinions: 13 Clarifications: 31 Bid-rigging in public procurement  Introducing a Certificate of Independent Bid Determination with National Treasury in terms of the PFMA  2 training workshops on how to identify, detect and report bid- rigging attended by 63 procurement officials from Department of Health and Cape Town Metro Towards a fair and efficient economy for all 13 Advocacy and stakeholder relations

14. Meetings with key stakeholders  Economic Development Department, Treasury, National Energy Regulator of South Africa, Industrial Development Corporation, National Agricultural Marketing Council, South African National Consumer Union, Department of Agriculture and South African Reserve Bank Comments on the Post Office Bill to the Department of Communications. Amendments to the Competition Act  Discussions with EDD on implications of criminalization  Meetings with the NPA and SAPS Commercial Crimes Unit Towards a fair and efficient economy for all 14 Influencing policy and legislation

15. Participation in international forums:  Competition Committee of OECD (papers on bid-rigging in public procurement, procedural fairness and standard setting)  Annual Conference of International Competition Network Collaboration with African agencies  Joint Food Project with Zambia and Egypt on edible oils, milling and fertiliser  Mauritian competition official seconded for 3 months  Shared experiences with visiting competition officials from Namibia Towards a fair and efficient economy for all 15 International relations

16. Communications Internal communications  8 news updates  3 newsflashes  3 staff meetings External communications  Media releases: 6  1 Competition News publication  Total media coverage: 671 print and 553 broadcast media  Website visits: 67503 times by 17 455 visitors Towards a fair and efficient economy for all 16

17. Knowledge management:  Incorporated into performance contracts  Testing of new case management system  Early change management initiatives Learning and development:  Coaching and mentoring for both middle and senior management  7 internal training (capacity building) sessions Corporate governance structures  11 Commission meetings  4 Executive Committee meetings  1 Mancom workshop  1 Audit Committee meeting Towards a fair and efficient economy for all 17 High performance competition authority

18. Performance assessments conducted and performance bonuses paid out 12 graduate trainees are part of the Commission’s graduate trainee programme Total staff complement including graduate trainees: 136  Appointments: 5  Resignations: 6 Towards a fair and efficient economy for all 18 Human resources

19. External audit conducted Internal audits conducted on Registry, Legal Services and Office of the Commissioner Alignment with EDD Motivation for additional funding Towards a fair and efficient economy for all 19 Planning and reporting

20. Implementation challenges Capacity and resources are strained Uncertainty on budget Implementation on hold:  T raining  Market enquiries  Organisational structure  Formation of a cartels unit  Raids Litigation costs are increasing Measuring impact Towards a fair and efficient economy for all 20

21. Thank you! Tel: 0123943332 Fax:0123944332 email: shanr@compcom.co.zashanr@compcom.co.za Towards a fair and efficient economy for all 21