Time to scrutinise state aid’s distorting effect on fair competition
A regulatory framework is needed to level the playing field between commercialised SOEs and their private rivals
Developed and developing countries recognise the need for competition between business enterprises. Those benefiting most from competition are consumers, who get products and services at competitive prices. In addition, competition stimulates innovation and growth — the more competition there is between business enterprises, the more they will try to create new products and services or improve existing ones, all of which benefits consumers.
Competition between business enterprises is therefore at the core of a healthy growing economy and as such must be nurtured, protected and encouraged. In SA this is achieved by the Competition Act, which has done a creditable job since its inception in 1998. The Competition Commission established in terms of the act has uncovered many cartels and imposed the necessary penalties. Businesses that were abusing their dominant positions within markets have been brought to book. The act and the actions that have been taken by the authorities un...
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