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Competition Act, 1998 (Act No. 89 of 1998)

Regulations

Price Discrimination Regulations, 2020

3. Factors of Price Discrimination to satisfy to establish a contravention

 

The factors that should each be considered in the establishment of a price discrimination contravention, includes:

 

(a) The selling firm must be dominant within the meaning of section 7 of the Act;
(b) there is differential treatment between the purchaser in the designated class of purchaser and other purchasers outside that class of the form of discrimination set out in section 9(1)(c) in respect of equivalent transactions for goods or services of like grade and quality as set out in section 9(1)(b) of the Act;
(c) the differential treatment—
(i) does not make reasonable allowance for differences in the cost or likely cost of supplying the good or service based on differing places or methods of supply as set out in section 9(2)(a)(i) or (ii);
(ii) does not constitute an act of good faith to meet a competitor's price as set out in section 9(2)(b); or
(iii) is not a legitimate response to changes in market conditions as set out in section 9(2)(c); and
(d) the differential treatment in price relative to other purchasers is likely to impede the effective participation of a firm or firms in the designated class of purchasers.

 

 


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