The Competition Commission concluded that Centrum Pharmacy was in breach of the excessive pricing provisions under Consumer Protection Regulations.
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On 19 February 2020, the Competition Commission released its reports on the provisional findings of the Land Based Public Passenger Transport Market Inquiry. Of the two reports published, we focus on the one which concerns metered taxis and e-hailing services.
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The regulations on price discrimination provide clarity defining price discrimination, establishing whether a contravention has occurred, and whether it is likely to impede effective participation by the “designated class” of consumers which the Legislature has identified as deserving of specific protection.
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Dominant firms are also prohibited from engaging in price discrimination and exerting unfair buyer power. Recently, these provisions have been amended to include specific protections for small and medium sized businesses.
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While the price discrimination regulations intend to protect “designated class” purchasers in the downstream market, the buyer power regulations intend to protect designated class suppliers in the upstream market.
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Guidelines serve as a warning that the competition authorities will be stringently monitoring future transactions and potentially levying higher fines for the prior implementation offence than in previous years.
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The advent of the 4th industrial revolution poses a dilemma for a number of regulatory bodies in South Africa and abroad.
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Recent amendments to the Competition Act highlight the need for companies to consider the potential public interest effect of their transaction.
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