Cooperation between FAS and the Competition Commission of South Africa in countering cartels has reached the practical

On 16-17 March 2017, a FAS delegation took part in a workshop on studying competition issues on the automotive markets, organized bythe Competition Commission of South Africa

Arrangements to carry out joint consultations on studying the automotive market were reached at bilateral meetings in September 2016 at the “Competition Week in Russia” international event and in December 2016 in the course of bilateral negotiations between Stats-Secretary, Deputy Head of FAS Andrey Tsarikovsky, and Deputy Commissioner of the Competition Commission of South Africa, Mr. Mulalo Hardin Ratshisusu.

On 16 March, there was a closed session attended by representatives of most government bodies of South Africa. In the introductory remarks Mr. Ratshisusu outlined the main event objective – to work out recommendations to solve the current issues on the South African automotive market by the end of 2017. He expressed gratitude to FAS representatives for continuing and developing cooperation between the competition authorities of Russia and South Africa, and   pointed out that “FAS and the Competition Commission of South Africa undertake joint efforts to solve competition issues in the socially-important sectors of the economy, and this event confirms it”. Mr. Ratshisusu also emphasized the importance of studying experience of regulating the automotive markets in other BRICS countries, especially in India and China.

One of the session speakers was Head of FAS Anti-Cartel Department Mukhamed Khamukov. He put an emphasis on productive cooperation between competition authorities of Russia and South Africa and shared experience of regulating the automotive market in Russia, and discussed development and implementation of the Fair Practices Code of car manufacturers on this market and devising recommendations for it.

FAS delegation also held bilateral negotiations with Head of the Cartel Division of the Competition Commission of South Africa, Mr. Makgale Mohalala. They discussed the main areas of bilateral cooperation and joint investigations of cartels in manufacturing and sale of car components and motor-service.

The parties stressed a trend towards considerable cartelization of their national economies. For instance, South Africa is now investigating 82 cases in various sectors of the economy and in Russia there are 300 such cases. Makgale Mohalala and Mukhamed Khamukov made arrangements for joint work not only in the automotive sector but also in other socially important sectors, such as: pharmaceuticals, food products, telecommunications, construction, etc. Representatives of the Cartel Division of the Competition Commission of South Africa also showed a significant interest to the methods of combating bid-rigging cartels in Russia.

Makgale Mohalala and Mukhamed Khamukov emphasized that cooperation between FAS and the Competition Commission of South Africa in cartel countering reached the practical stage.