Rethinking Exclusionary Abuse in South Africa

Following South Africa’s transition to democracy in 1994, its economy was characterised by concentrated markets, and key industries were dominated by large firms that had historically enjoyed (and in some cases continue to enjoy) significant state support. In this environment, one would expect instances of exclusionary behaviour by dominant firms to be prevalent and damaging. When South Africa’s Competition Act 3 was drafted in the late 1990’s, promoting the entry of small firms into previously inaccessible markets was therefore (and continues to be) a priority of the postapartheid government. However, commentary by senior members of South Africa’s competition enforcement bodies suggests that the abuse of dominance provisions of the Act have suffered from ‘under-enforcement’. This is an unsatisfactory outcome, given South Africa’s economic circumstances. Roberts states: