The success of the Competition Commission's work should not be measured only by the fines imposed by the Competition Tribunal, commission head Shan Ramburuth said on Tuesday.
The success of the work of the competition authorities should be measured by, firstly, the extent to which it benefited consumers in terms of prices, quality, and the range of products offered, he told the National Assembly's economic development committee.
Secondly, particularly for an economy such as South Africa's, the number of new entrants to the market, he said.
Competition policy and competition law had to create spaces for new entrants. This meant breaking the stranglehold of the "old boys club" in different markets.
The commission intended to put considerably more effort into monitoring and evaluating the results and impact of its work, Ramburuth said.
Several MPs raised concern the fines imposed were insufficient deterrent.
They said businesses simply paid the fines and carried on their anti-competitive behaviour, with the consumer having to continue paying excessive prices for products.
Ramburuth conceded that sometimes it was more worthwhile for a business to continue with the anti-competitive behaviour, because they made more profit out of that, even if they were fined.
"Certainly there are instances where the fine is not a deterrent. People just merely incorporate it into their costs. They budget for it up front," he said.
However, the R250 million fine recently imposed on Sasol, for example, was "not a slap on the wrist".
"It's a reasonable fine. People might think otherwise.
"What is always first prize for us, is that that anti-competitive behaviour that led to higher prices stops. And inevitably always, both in our settlements and in orders of the tribunal, it's not only the fine that is ordered.
"What is also ordered and what is an important part of the settlement, is a description of what the behaviour was, and a commitment that that behaviour will never occur again.
"That's a non-negotiable part of our settlement."
Uncovering anti-competitive practices or collusion that had been hidden for decades, in some instances, was also not a small thing.
Ramburuth said it should be remembered that the fines in the current Competition Act were not meant to punish people.
"It's not a punishment fine, it's a deterrent fine... like a speeding fine... it must deter you, it must be a disincentive. And that's how our Act is constructed. It's not criminal law, it's civil law. It's [like] these are administrative penalties. That's what they are, they're not meant to be punishments."
The draft Competition Amendment Bill seemed to be a move to add the punishment element to it.
"You may be aware, [the draft includes] a jail sentence of up to ten years for individuals who might be involved in anti-competitive behaviour, and I think the thinking behind it is that will be a proper disincentive.
"If people think they are going to jail, then they're certainly not going to continue with this kind of behaviour," he said.
Responding to suggestions that the competition authorities "cap" product prices for a period along with the fines, Ramburuth said the commission wanted to create high levels of competition and fairness in a market place. Its role was not to fix or regulate prices, but rather to free up the market.
