Analysis of the use of electronic surveillance to investigate cartel conducts : a case study of the competition commission of South Africa in Pretoria

Abstract

This study explored the value that electronic surveillance adds to cartel investigations by adopting a qualitative research approach, utilising a case study research design, and guided by the exploratory research objective. The non-probability: purposive sampling was employed to target ten (10) participants, distributed as follows: Five (05) investigators and other 05 legal counsels, attached to the Competition Commission of South Africa. Participants were chosen based on rank seniority, division roles and work experience. For data collection methods, the semi-structured face-to-face interviews, documentary studies and structured observations methods were conducted. The collected data was analysed using the inductive Thematic Content Analysis (TCA). The findings of this study revealed that the application of electronic surveillance can facilitate the detection of cartel activities by monitoring suspicious communications and transactions among competitors. It is also established that the secretive nature of cartel conducts poses challenges for competition authorities around the world to effectively detect it. Individuals involved try to conceal their cartel activities and evidence thereof. Moreover, the consulted literature studies confirmed that use of electronic surveillance is a common practice among competition authorities in the developed countries to detect and investigate cartels. For recommendations, it is provided that the investigation model on implementation of electronic surveillance as an investigation tool to assist the Competition Commission to easily detect and prosecute cartel activities, which may assist competition authorities to adopt a proactive stance to easily identify firms, which are potentially involved in cartels conduct.