Opinion and analysis

Market inquiry woes

South Africa’s poultry industry has just been through the worst year in its history, beaten into huge losses by bird flu, electricity shortages and road, rail and water infrastructure failures.

The Competition Commission thought this was the right moment to burden this large strategic national industry with a market inquiry. This will involve it in months or even years of investigations and expensive submissions, and may result in forced restructuring which would make it less competitive and less efficient.

The automotive industry, one of the country’s largest employers and exporters, is also in trouble. It will be hoping the Competition Commission doesn’t decide that an automotive industry market inquiry right now is just the thing.