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competitive practices.
Market - is a mechanism that brings together business players i.e. buyers and sellers
Anti-competitive practices- are practices that distort free and fair market, these include. An anti-
competitive practice is viable attempt to prevent or reduce competition in a market. E. g Price
fixing, mergers and acquisitions, regulations
As per Section 4 of The Competition Acti, Competition is competition in a market in Kenya and
refers to the process whereby two or more persons supply or attempt to supply, acquire or
attempt to acquire from the people in that market or substitutable goods or services.
1956-Enactment of price control ordinance that was later renamed price Control Act
In mid-seventies, government allowed import competition into the domestic market on quota
basis.
In 1988,there was enactment of Restrictive Trade Practices, Monopolies and Price Control Act
Objectives of RTPMPC
Control the escalating prices of goods that resulted from monopolization and restrictive trade
practices
Between 1980 and 1998, there was the establishment of the Monopolies and Price Commission
to regulate mergers and prices.
There was continued application of the Act until 2010 when the Competition Act came into
force.
1. Agreement between enterprises- competition law regulates and prohibits agreement and
practices that may hinder free and fair trade. E.g. Collusion of enterprises and formation
of cartels.
2. Monopolization- Having a complete or total control over a market by a single firm or
having complete domination of the market by a single firm. This law works to prevent
domination by a company or a firm in the market. Monopolization maybe because of
market power, exclusionary conduct or business justification.
3. Mergers and acquisition-A merger/ amalgamation is the combination of two or more
companies into one. Acquisition is where one company is taken over by another. The law
supervises aspects of acquisitions and mergers.
The act regulates a set of potentially anticompetitive behaviors and creates 2 institutions to
enforce its powers.
1. Competition Authority
Functions s.9
2. Competition Tribunal
Est in S.71