Businesses must comply with Competition Act - Adams & Adams

"In a nutshell, the Competition Act impacts on almost all areas of business. It aims to ensure an effective market-based economy that functions for the benefit of all consumers. It therefore restricts businesses from behaving in ways that could adversely affect the level of competition and accordingly the benefit to consumers," he says.

Heavy fines can be imposed

He explains that the Act prohibits competitors from colluding to keep the selling price of their products artificially high. Heavy fines are exacted on enterprises that contravene the Act and as a result non-compliance has become one of the most critical risks for businesses to manage.

The Act also seeks to level the playing field for smaller businesses and provides protection for these firms from being abused by dominant market players. "In some instances," elaborates Marais, "small firms may even be allowed to behave in ways that would be prohibited for others to enable them to gain traction in the market.