Competition Commission Prepares To Formally Initiate Another Inquiry

The Competition Commission (the "Commission") has published its draft terms of reference ("Terms of Reference") for the third market inquiry it intends to launch since the promulgation of the market inquiry provisions of the Competition Act, No. 89 of 1998 (as amended) (the "Competition Act") in April 2013. The Commission will once again focus on the grocery retail sector, after its previous investigation into supermarkets and exclusive leases, in what it is calling the "grocery retail sector market inquiry" (the "Inquiry").

According to the Terms of Reference, the Commission plans to initiate the Inquiry because it has reason to believe that there are features in the sector that may prevent, distort, or restrict competition. In particular, the Commission has identified, inter alia, that the four largest supermarket chains operating in South Africa, collectively account for more than 90% of the market and that these firms are able to operate as grocery anchor