The Department of Trade, Industry & Competition has called for input by 3 July 2024 on draft regulations under the Competition Act, 1998, dealing with restrictive vertical practices. The intention is to compile a ‘non-exhaustive list’ of factors relevant to the process of determining whether a vertical practice believed to restrict competition in fact falls under the Act’s section 5.

Among other things, the factors proposed include:

  • the nature and duration of any restraint in an agreement
  • the implications of implementing such a restraint
  • the nature of the good or service subject to a restraint
  • the individual market, market segment and geographic area shares of parties to an agreement
  • competitive forces enjoyed by parties to a supply chain agreement
  • barriers to market entry
  • an agreement’s impact on small and medium businesses, as well as those owned by historically disadvantaged individuals
  • parallel networks of similar vertical restraints among competitors
  • vertical relationships in a franchise arrangement, and
  • the ‘strength and importance’ of inter- and intra-brand competition.

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Published by SA Legal Academy Policy Watch

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