The Competition Regulatory Authority (“ARC”) approved, through Resolution no.
1/2025, of March 31, the Regulation of the Leniency Regime (“Leniency Regime”), thus
implementing the provisions of article 26 of the Regulation of the Competition Law,
approved by Decree no. 97/2014, of December 31.
This new law aims to strengthen the mechanisms for identifying and inhibiting
practices that restrict competition, providing the ARC with an essential tool through
which individuals, companies or groups of companies that carry out economic activity
in Mozambique, or have an effect on it, can benefit from a possible reduction in fines 1 .
Context
The Leniency Regime applies to infringement proceedings in the context of anti-
competitive practices, namely agreements restricting competition, decisions by
associations of undertakings and concerted practices, under the terms of articles 17
and 18 of the Competition Act.
It covers both offenders already targeted in ongoing proceedings and parties who,
although potentially involved in the illegal practice, have not yet been formally subject
to an administrative offense proceeding.
The Leniency Regulation consists of 12 articles, which clearly and in detail define the
procedure and requirements for its application.
The conditions for the application of the Leniency Regime
The possibility of benefiting from the Leniency Regime is subject to the cumulative
verification of the conditions set out in Article 3, namely the immediate cessation of
the anti-competitive practice, the absence or insufficiency of evidence by the ARC, the
confession of the infringement by the applicant and the provision of full and
continuous cooperation throughout the procedure. The ARC accepts that the cessation
of the practice may be postponed if this is necessary to safeguard the effectiveness of
the investigation.
The reduction in fines
The Leniency Regime establishes a system for reducing fines, based on the
chronological order of cooperation and the probative value of the evidence provided
by the applicants. Thus, the first company to provide evidence of significant additional
value may benefit from a reduction of between 50% and 70% of the applicable fine,
the second between 30% and 50% and the third between 10% and 30%. In accordance
with Article 4 (2), the ARC will assess the additional value of the evidence based on its
relevance and level of detail.
The procedure
The procedure begins with the submission of a request for clemency in writing or by
oral statements formalized at the ARC headquarters. The applicant must identify
him/herself, describe the infringement in detail, indicate the participants involved and
present the available evidence.
Whenever an application for leniency containing all the elements provided for in
Article 6 of the Leniency Regime is submitted, the ongoing administrative offense
proceedings are suspended for a period of 30 days in order to carry out a preliminary
assessment of the application.
Conclusion
The entry into force of this new regime represents a significant institutional advance in
the system for enforcing competition rules in Mozambique and is also a milestone in
the legislative framework of Mozambican Competition Law.
An anticipated advantage of this mechanism will be that it will allow access to
information on illegal practices, strengthening the ARC’s capacity to act on alleged
infringements.
With this initiative, the ARC aligns itself with international practice and strengthens its
institutional capacity to prevent, investigate and sanction practices that potentially
harm competition.
Considering this new legal framework, it is advisable for companies with activities or
businesses in Mozambique to review their internal competition compliance programs,
implement effective internal communication channels and develop routines for
continuous monitoring of risk situations.
In situations where there is evidence of involvement in anti-competitive practices, the feasibility of submitting a leniency application should be considered within the
framework of a comprehensive business strategy.
For further information and updates please contact JLA Advogados, the LEX Africa member for Mozambique, on maputo@jlaadvogados.com or visit www.jlaadvogados.com.
