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Gambia Competition Commission Act 2007

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You can download the FULL TEXT of the Competition Act of 2007.

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Background Information:
The Gambia Competition Act of 2007 was enacted  into law by the National Assembly in Banjul and assented by the President on the 5th October, 2007. The statute is made up of 11 parts with 61 sections and 2 schedules added. It provides for the setting up of the Competition Commission made up of five commissioners appointed by the President.

Purpose of the Act:
The main goal of the Act is to encourage greater competition in the distribution of products and services in the Republic of The Gambia. To achieve this main aim the GCA has laid out prohibited practices  and empowers the GCC regulating authority to take action against undesirable, anti-competitive business practices.

Frequently Asked Questions:           

What are the objectives of the 2007 Competition Act?
Its objectives are to thwart collusive agreements and rigging of tender bids by looking into and controlling restrictive practices and agreements, monopolies, champion and promote competition, protect the interests of consumers in Gambia and ensure free trade in the country's markets.

What is Unfair Competition?
The implementation of practices such as predatory pricing, collusive price fixing, discriminatory pricing, deliberate reduction in output in order to increase prices, creation of barriers to entry, tie-in sales, allocation of markets, etc., are considered unfair competition.

What is Market Competition & Why is it Needed?
Basically, market competition is when distributors endeavour for buyers to purchase their goods and services to maximise profit or achieve other aims for establishing the business. A purchaser aims to buy a product at a low price, while the seller prefers to sell at a price that maximises profits.

Market competition is the most optimum way of ensuring that consumers have a choice to the broadest selection of goods and services at the most competitive prices, leading to more productive and allocative efficiency. Therefore, as a pre-requisite, healthy market conditions are necessary, and appropriate regulations to promote competition must be put into place.

What Constitutes an "Agreement" Under the Act?
An agreement means an arrangement between businesses which is implemented or intended to be carried out in The Gambia, irrespective of the form in which it is made, and could be a verbal agreement and a concerted practice. It does not need to be formal or in writing or to be enforceable by law.

What is an Anti-competitive Agreement?
An agreement that restricts competition which includes, but are not limited to the following examples:
* An agreement to restrict supply & production to drive up prices.
* Agreement to carve up markets.
* Agreement to collusively bid or bid rigging.
* Conditional sale / purchase (lock-in arrangement).
* Exclusive distribution / supply arrangements.
* Price fixing agreement.
* Refusal to deal (can be vertical or horizontal).
* Resale price maintenance (RPM).

What Business Practices Are Prohibited Under The Act?
Collusive Agreements: concerted practices, agreements or decisions made by company associations in the same market to share markets between themselves or fix prices, such as restricting competition and bid rigging.

Non-collusive Agreements and Monopolies: These are defined as practices that might occur between a firm and other entitities such as suppliers or customers that are able in restricting, distorting or preventing competition, but are not inherently anti-competitive.

What is Abuse of Dominance?
A business enterprise in a position of strength which allows it to trade independently of competitive market forces or to affect its consumers, competitors or the market to its benefit is seen as dominance. Examples of such abuse of dominance are:
* applying different conditions to similar transactions;
* creating barriers to entry;
* exclusionary predatory pricing;
* preventing access to market;
* setting down of unfair conditions or price;
* the limitation of market/production or technical development and
* the leveraging of dominant position in one market to gain advantages in another.

The information on the above page should not be relied on for any information or guidance and does not constitute legal advice or guidance on any matter whatsoever. You should visit the Gambia Competition Commission's official website or their office in the Greater Banjul area, for any information of any kind that you seek.

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