Five-year report from the institution supervised by the Ministry of Finance shows that cases of vertical and horizontal agreements are major problems and that 70% of cases arise from complaints
The oil sector is the one that has given the Competition Regulatory Authority (ARC) the most problems, with a total of 13 notifications, making up just over 23% of the total notifications in the period between 2018 and 2023. According to data from the report called “5 Years of Competition Policy in Angola 2018-2023”, presented yesterday, in Luanda, in the institution’s five years of activity, 56 notifications and 50 deliberations were made.
According to ARC data, after oil, the agricultural and livestock sector continues on the list of most problematic, with seven notifications, followed by the banking and construction sectors, with four notifications each. In the opposite direction, it is clear that the civil aviation, environmental, cement, security and maritime transport sectors are those that present the least problems in terms of competition, as they all had only one notification during the period between 2018 and 2023.
The ARC shows that the cases were essentially linked to abuse of dominant position, vertical agreements and horizontal agreements, which refer to behaviors carried out by companies with the clear intention of obtaining their own benefits to the detriment of a free market, healthy competition and satisfied consumers. If we look at nature, we realize that the majority of notifications are aimed at acquisition processes and few against merger processes. It is obvious that the majority of cases, 70%, arose through complaints, a situation that contrasts with the widespread idea that Angolans do not report.
“We must not confuse regulation with competition defense”
When speaking at the first panel, called “Competition in the digital economy”, the representative of the Portuguese Competition Authority, Miguel Moura e Silva, highlighted that it was important not to confuse the defense of competition with regulation, as they deal with different issues. Competition defense is, in essence, about combating the abuse of a dominant position, monopoly and, therefore, has a more causalist bent and requires complex investigations.
On the other hand, regulation is about formalizing regulatory conduct. “Regulation is the continuation of the defense of competition by other means”, said Miguel Moura e Silva in concluding his presentation, having also made reference to the need for States to train themselves, as only then will they being able to stand up to and demand compliance from companies, which are increasingly larger and more capable of influencing.
BY: Ladislau Francisco