Challenging anti-competitive behaviour by SMEs in the South African manufacturing sector

M.Comm.The South African Competition Act (Republic of South Africa, 1998) has had little impact in diluting the dominance of big business in the agri-food and steel value chains despite being in existence for over ten years. It is in this context that the study seeks to create a picture of the impact of anti-competitive behaviour on SME manufacturers in these value chains and, from this, to determine whether the Competition authorities should focus specifically on supporting SMEs as competitors. The study adopted an inductive approach and fell within the positivist research philosophy. The research methodology was based on work undertaken internationally to create a database of evidence of anti-competitive behaviour from newspaper reports. This research methodology was qualitative in nature in so far as content analysis was used to analyse the data, being English language newspaper reports and Competition Commission press releases. The findings showed that anti-competitive practices that were engendered during Apartheid have continued into the modern South African agri-food and steel value chains, despite state support and regulation in these value chains having ceased. Anti-competitive behaviour in these value chains has not targetted SMEs specifically; it has also increased the costs of doing business and foreclosed opportunities for bigger businesses. However, SMEs do face unique difficulties in fighting cases of anti-competitive behaviour. The study concludes there is considerable scope for the Competition authorities to facilitate the participation of SMEs in the economy without having a specific focus on SMEs. They can do this by using tools such as market inquiries, the Corporate Leniency Policy and structural remedies. However, these tools are still relatively new and, accordingly, it is not yet possible to assess the efficacy of the Competition authorities in creating a more supportive market structure for SMEs