CAC Hands Down Decision In SAB Appeal

On 14 November 2012 the Competition Appeal Court (CAC) upheld an appeal by the Competition Commission against a decision of the Competition Tribunal, which set aside the Commission's complaint referral against South African Breweries Limited (SAB) and several of its independent distributors.

The referral originated from the Commission's investigation of a complaint lodged by various retail and wholesale alcohol distributors. The Commission's referral was based on evidence of collusion, price discrimination, and anti-competitive conduct between a manufacturer and its suppliers, including the setting of a minimum price.

The Commission further alleged that, in terms of its wholesaler and franchise agreements, SAB appointed independent distributors in various locations. These distributors were not permitted to compete with one another in the territories in which they were allocated. The Commission also alleged that SAB would not undercut its distributors to prevent