The publication of the Competition Act, 2022 marked a significant milestone in Lesotho's economic landscape. Previously, the Kingdom of Lesotho relied on common law principles to address instances of unfair competition, resulting in inadequate enforcement against anti-competitive behaviour. However, with the introduction of the Competition Act, Lesotho is poised to align itself internationally in regulating business transactions and ensuring a competitive market environment. The Act, published on 9th September 2022, is set to be enacted on a date determined by the Minister and subsequently published in the Gazette. However, as of the present date, no notice confirming the Act's promulgation has been observed.
- The publication of the Competition Act, 2022 (the “Act”) marked a significant milestone in Lesotho's economic landscape. Previously, the Kingdom of Lesotho relied on common law principles to address instances of unfair competition, resulting in inadequate enforcement against anti-competitive behaviour. However, with the introduction of the Competition Act, Lesotho is poised to align itself internationally in regulating business transactions and ensuring a competitive market environment.
- The Act, published on 9th September 2022, is set to be enacted on a date determined by the Minister and subsequently published in the Gazette. However, as of the present date, no notice confirming the Act's promulgation has been observed.
- That being said, on 21st of February 2024, the honourable Finance Minister Retselisitsoe Matlanyane highlighted in her budget speech the Government's dedication to advancing crucial legislative measures. Among these measures, she mentioned that the Ministry of Trade is diligently working towards the enactment of the Competition Bill and the Insolvency Bill, among other.
- The Competition Act, 2022 aims to regulate various aspects of commercial conduct to foster fair competition and protect consumer interests. Key provisions of the Act include:
- Regulation of interactions between competitors (horizontal practices).
- Oversight of interactions between suppliers and customers (vertical practices).
- Scrutiny of firms with significant market power (dominant position).
- Regulation of pricing behaviour to prevent exploitation of market dominance.
- Examination and regulation of mergers to preserve market competition.
- The Competition Act is set to prevail over any other laws dealing with competition issues in cases of inconsistency.
- In anticipation of the imminent promulgation of the Competition Act, Webber Newdigate's commercial team has proactively undertaken measures to aid clients in acclimating to the forthcoming regulatory landscape. Recently, the team compiled and finalised its comprehensive manual on the competition bill, ensuring readiness to support clients in preparing for its enactment and guiding them through its implementation post-promulgation.
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