Zimbabwe 2001

Score = 23

Governed by: Competition Act of 1996 (hereinafter referred to as “Competition Act”) as amended by Amended Competition Act of 2001 (hereinafter referred to as “Amended Act”).

Category	Subcategory	Score	Comment
Scope	Extraterritoriality	1	Article 3 of the Amended Act says that the Competition Act applies to all activities having an effect in Zimbabwe.
Remedies	Fines	1	Article 29(7) of the Competition Act allows the Commission to fine for violations of the Act.
	Prison Sentences	1	Article 29(7) of the Competition Act allows the Commission to impose imprisonment for violations of the act, as does article 42(3).
	Divestitures	1	Article 31(2)(b) and 31(2)(d) permit the Commission to force divestment of unauthorized mergers and monopolies.
Private Enforcement	3rd Party Initiation	1	Article 44 gives injured 3rd parties a right of action.
	Remedies Available to 3rd Parties	1	Article 44 gives injured 3rd parties the right to collect damages for certain business practices.
	3rd Party Rights in Proceedings	1	Article 28(2) requires the Commission to allow interested parties to make written submissions to the Commission about investigations, but Article 36(1) allows the Commission to bypass this requirement for merger applications if it believes that accepting submissions would be counterproductive.
Merger Notification	Voluntary	0
	Mandatory	3	Article 12 of the Amended Act (amending Article 34A of the original Act) requires notification of mergers.
	Pre-merger	0
	Post-merger	1	Article 12 of the Amended Act requires that the notification occur within 30 days of the conclusion of the agreement.
Merger Assessment	Dominance	1	Article 32(4) defines a merger that is contrary to the public interest as one that is likely to result in a monopoly situation.
	Restriction of Competition	1	Article 32(4) of the Competition Act says that in assessing a merger the Commission must consider its effect on competition.
	Public Interest (Pro D)	1	Article 31(2) specifies that mergers contrary to the public interest must not be allowed. Article 32 provides a list of factors which will aid in determining whether a merger is beneficial or harmful to the public.
	Public Interest (Pro Authority)	0
	Other	1	Article 324a(h) requires the Commission to consider whether a company is failing or likely to fail in considering whether to allow a merger.
	Efficiency	1	Article 32(5)(a) would allow for the creation of a monopoly, if such monopoly granted substantial efficiency benefits.
Dominance	Limits Access	1	Article 2(1) lists any party limiting market access as a restrictive trade practice subject to regulation.
	Abusive Acts	0
	Price Setting	1	Article 2(1) lists price setting as a restrictive practice, subject to regulation.
	Discriminatory Pricing	0
	Resale Price Maintenance	1	Article 9 of the First Schedule bans resale price maintenance.
	Obstacles to Entry	1	Article 2(1) lists the creation of obstacles to entry as a restrictive trade practice, subject to regulation.
	Efficiency Defense	1	Article 32(2) offers a limited efficiency defense for certain restrictive trade practices, however Article 32(3) precludes the defense for practices labeled as unlawful trade practices.
Restrictive Trade Practices	Price Fixing	1	Article 14 of the Amended Act adds predatory pricing to the list of prohibited agreements or monopolistic acts. Section 2 defines "restrictive practice" as one "enhancing or maintaining the price of any commodity or service"
	Tying	1	Article 2(1) bans tied sales.
	Market Division	1	Article 7 of Schedule 1 of the statute bans market sharing.
	Output Restraint	1	Section 2 defines "restrictive practice" as one "restricting the production or distribution of any commodity or service." Article 7 of the First Schedule also bans output restraint.
	Market Sharing	1	Article 7(1)(b) of the First Schedule bans market sharing.
	Eliminating Competitors	1	Section 2 defines "restrictive practice" as one "preventing or restricting the entry into any market of persons producing or distributing any commodity or service"
	Collusive Tendering/Bid-Rigging	1	Article 6 of the First Schedule of the Competition Act prohibits bid rigging.
	Supply Refusal	0
	Efficiency Defense	1	Article 32(2)(b) provides for a limited efficiency defense, but it is not effective for practices banned in the First Schedule.