Market Inquiries and the Enforcement of Competition Law in South Africa: A Case Study of the Banking Market Inquiry in Light of the Foreign Currency Cartel

This paper examines the role of market inquiries in the enforcement of competition law in South Africa, focusing on the Banking Market Inquiry (BMI) and its intersection with the foreign currency cartel case. It explores how market inquiries, as formal investigations into market structure and conduct, enable competition authorities to identify and address market failures, enhance regulatory knowledge, and promote consumer welfare. The analysis highlights the unique regulatory landscape of South Africa’s banking sector, characterised by high concentration, significant barriers to entry, and concurrent jurisdiction between competition authorities and sector regulators. The BMI’s findings revealed persistent challenges, including opaque pricing, exploitative penalty fees, and limited access to payment systems, while also noting progress in transparency, consumer choice, and digital transformation. The paper discusses the impact of cartel behaviour and merger control on market dynamics, emphasising the importance of robust coordination and adaptive regulatory strategies. Ultimately, the study demonstrates that market inquiries are invaluable tools for diagnosing structural issues, informing policy, and guiding enforcement actions. Ongoing reforms and vigilant oversight are essential to foster a competitive, transparent, and inclusive financial system that serves the diverse needs of the South African society.