Find us on Google+

Thursday, 3 April 2008

Murray Sanderson on real competition...

Murray Sanderson makes a very valid point on the Zambia Competition Commission's recent (desperate ?) effort to prevent BP gaining sole control of Zambia's only jet fuel:

Much as I dislike monopolies, I disagree with the ZCC's involvement in issues of shareholding. What does it matter whether a company has a single shareholder or two or several? The competition we want is not between shareholders but between market players. Whether BP is sole owner of the Zambia's only jet fuel supplier, or whether the supplier is jointly owned by BP and Mobil, is immaterial. The supplier is still a monopoly. One can even argue that it is more dangerous if jointly owned by BP and Mobil, because then there is no possibility that Mobil will come in as a competitor. Equally, it is silly to object to Vedanta owning a majority of KCM shares. The competition we need is between companies, not within companies.

No comments:

Post a Comment

All contributors should follow the basic principles of a productive dialogue: communicate their perspective, ask, comment, respond,and share information and knowledge, but do all this with a positive approach.

This is a friendly website. However, if you feel compelled to comment 'anonymously', you are strongly encouraged to state your location / adopt a unique nick name so that other commentators/readers do not confuse your comments with other individuals also commenting anonymously.