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ARTICLE · 02 JANUARY 2014

The War Of The Titans

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The current feud between Massmart and Shoprite regarding Shoprite's exclusive rights in terms of the lease in CapeGate shopping centre is rekindling competition concerns in the property and retail industry over what is considered common practice.

South AfricaAntitrust/Competition Law
Janine Reddi
Janine Reddi
Ian Jacobsberg
Ian Jacobsberg

WITHOUT PREJUDICE

The current feud between Massmart and Shoprite regarding Shoprite's exclusive rights in terms of the lease in CapeGate shopping centre is rekindling competition concerns in the property and retail industry over what is considered common practice.

Shoprite recently filed an urgent application for an interdict in the Western Cape High Court, challenging the legality of a Waltmart-owned Massmart Game store in the CapeGate centre competing directly against its outlet in the same mall following the introduction of Game's Foodco section.

Shoprite's legal challenge is based on an exclusivity agreement with CapeGate landlord Hyprop Investments, which grants it the right to operate as the sole supermarket, grocery store and liquor store in the centre, with the exception of Pick 'n Pay and Woolworths. Massmart responded by claiming that Shoprite was effectively preventing competition by enforcing these rights and the matter has been referred to the

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