Inducement as an abuse of dominance in South African Competition Law

Abstract

Section 8(1)(d)(i) of the South African Competition Act 89 of 1998 prohibits a dominant firm from requiring or inducing its supplier or customer not to deal with a competitor unless there are technological, efficient or other pro-competitive gains that outweigh the anti-competitive effects of the act concerned. The key problem that competition authorities globally are facing, South Africa included is that competition, quite literally, is tantamount to inducement. Every advertising campaign or innovation is aimed at inducing customers or suppliers not to deal with competitors. The critical issue is distinguishing between well-functioning competition and malfunctioning competition. As dealt with in this dissertation, significant research has been conducted and a number of cases have been decided in South Africa to deal with this critical question. This study also considers how the issue of inducement is dealt with in the European Union (EU) and whether there is any guidance that can be taken by South Africa from the manner in which the EU approaches inducement by a dominant firm