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ARTICLE · 19 MAY 2014

No Certainty For Dual Distribution Relationships

The Competition Tribunal issued its long-awaited decision in The Competition Commission and South African Breweries and Others.

South AfricaAntitrust/Competition Law

On 24 March 2014, the Competition Tribunal (the "Tribunal") issued its long-awaited decision in The Competition Commission and South African Breweries and Others. The original complaint against South African Breweries ("SAB") and its Appointed Distributors" ("ADs") was lodged with the Competition Commission (the "Commission") nearly ten years ago, referred to the Tribunal nearly seven years ago, and has been the subject of various interlocutory disputes ever since.

By way of background, the current Liquor Act, unlike its predecessor, imposes no prohibition against a single entity holding both a manufacturing and a distribution liquor license. In this regard, SAB both manufactures and distributes its products: it operates seven breweries in South Africa, each of which is licensed to manufacture and distribute beer, and it operates 40 wholly-owned distribution depots.

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