Competition Policy In Namibia Essay

Competition policies in Namibia used to regulate businesses.

This assignment serves to highlight the main objectives of competition policy and to determine whether or not these policies are effective.

The goals of Namibia’s competition policy are established in terms of section 2 of the competition act (Goomab, 2003). The Namibian Competition Commission and the high court of Namibia ensure that these competition policies are followed. Amunkete (2011) she defines competition policy as laws that are set to regulate anti-competitive practices and in the same breath promote competition in markets. The anti-competition practices results in inefficient allocation of resources and negative economic growth. A very good example of anti-competitive

The Namibian Competition Commission introduces rules or regulations to govern the different markets and this are also known as competition policy. In addition, it ensures that small firms have an equitable opportunity to participate in the Namibian economy (Amunkete, 2011). According to the findings by Namibia statistics Agency (2016) its data revealed that consumer price index (CPI) increased from 3.3 to 3.7. This is a clear indication that there is fair competition among firms and that the competition policy has achieved one of its objectives in Namibia. However, the success of this competition policy comes at the expense of decreasing business profits and this result into disagreements in goals between the two parties. For instance, many firms will want to merge in order to dominate that particular market and earn abnormal profits. But Namibia’s competition policy strictly controls these merger proposals and only permits few mergers that will not disturb the flow of competition in the markets and that will also help in the accomplishment of its objectives. This will result into a decrease in firms that desire to own most of the market shares and abuse their