Regulation of dominant firms in South Africa

Abstract

This research report considers how dominant firms can establish when their competitive strategies are not anti-competitive. It argues that a dominant firm‟s actions can either be pro-competitive, thus conduct which competition law is designed to protect; or, anti-competitive and therefore prohibited. It questions whether there are any key principles that are emerging from South African competition law practice and decided cases that can provide some guidelines to dominant firms on whether planned action is prohibited conduct? It also questions whether the enforcement of the South African Competition Act‟s abuse of dominance provisions may have led to the chilling of competition. The research utilised the following methodologies: expert interviews; case studies; and, review of the competition authorities‟ enforcement actions. The report concludes that abuse of dominance cases are highly fact-intensive, industry specific and outcomes are effects-based. As such, it is difficult to prescribe a general rules-based compliance program to guide dominant firms in their development of competitive strategies. Copyright