Mauritius Brief – 09/07/2010

9 July 2010|In Mauritius Briefs

In this issue:

  • CCM launches market study of cement sector

CCM launches market study of cement sector

On 1 July 2010 the Competition Commission of Mauritius (“the CCM”) launched a study into the cement market in Mauritius under the authority of section 30(h) of the Competition Act 2007, which empowers the Competition Commission to “undertake general studies on the effectiveness of competition in individual sectors of the economy”. The purpose of the investigation is to determine conditions of competition in a particular sector and then either launch formal investigations into any potential infringements of the Competition Act or make unenforceable recommendations to government in the event that the Commission discovers problems with competition which fall short of infringing the Competition Act.

The CCM has undertaken to look into all aspects of the cement market, including the importation and sale of cement in Mauritius by private companies and the role of the State Trading Corporation (“the STC”) in securing supplies. However, the CCM will not make a determination as to whether the price paid by the STC is too high.

The Executive Director of the CCM, John Davies, has mentioned that one of the main purposes of a study into a particular industry is not only to identify areas of potential infringements for a subsequent formal investigation but also to inform the Mauritian Government of potential competition problems in that industry. The study could also recommend improvements in relation to particular sectors within in the industry which have significant Government regulation.

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