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ARTICLE · 17 DECEMBER 2019

The Competition Act: Dominance And Its Abuses

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The danger posed by a dominant firm is that it is able to conduct its business without any consideration of its customers or competitors, and potentially act in a way which is detrimental

South AfricaAntitrust/Competition Law
Tereza Tabacks
Tereza Tabacks
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The danger posed by a dominant firm is that it is able to conduct its business without any consideration of its customers or competitors, and potentially act in a way which is detrimental to competition.

The Competition Act (89 of 1998) includes a number of provisions aimed at preventing abuses by dominant firms. Along with preventing collusion between suppliers of goods and services, preventing abuse of dominance is what most people understand as the role of competition regulation, and certainly it is a foundational aspect of competition law. The purpose of competition regulation is to create an environment in which firms, large and small, can compete in their relevant market fairly.

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