Association of Shipping Lines v Competition Commission (22/CAC/Sep02) [2003] ZACAC 8; [2003] 2 CPLR 228 (CAC) (14 November 2003)

Association of Shipping Lines v Competition Commission (22/CAC/Sep02) [2003] ZACAC 8; [2003] 2 CPLR 228 (CAC) (14 November 2003)

The court held that the wording of section 10 of the Competition Act draws a clear distinction between individual agreements or practices and categories thereof. The ordinary and literal meaning of 'category' supports the applicant's interpretation that block exemptions are contemplated by the Act. The Commission therefore has jurisdiction to consider and grant exemptions for categories of practices, provided the requirements of section 10(3) are met. The respondent's opposition was not supported by the Act, which is designed to apply broadly across all sectors and is not industry-specific. The court found that the Commission's refusal to consider block exemptions was incorrect and...

Citation
[2003] ZACAC 8
Parties
Applicant: Association of Shipping Lines; Respondent: Competition Commission of South Africa
Court
Competition Appeal Court
Jurisdiction
South Africa
Judgment Date
14 November 2003
Case Number
22/CAC/Sep02
Procedural Posture
Review Application / Judgment
Outcome
Application granted. Declaratory relief issued confirming the Commission's jurisdiction to consider category exemptions. Costs awarded against the respondent.
Judges
Patel, Hussain, Mailula
Legal Topics
Exemption Application, Block Exemption, Interpretation of Statute, Jurisdiction of Competition Commission
Competition Law Commercial and Corporate Exemption Application Block Exemption Interpretation of Statute Jurisdiction of Competition Commission

Case Brief

Summary, issues, holding and outcome

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Parties

Association of Shipping Lines

Applicant

Competition Commission of South Africa

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the Competition Commission has jurisdiction under section 10 of the Competition Act to consider applications for exemption for categories of agreements and practices.
  2. 2 Whether the Commission may grant block exemptions for generic types of practices under section 10(1)(b).

Ratio Decidendi

The court held that the wording of section 10 of the Competition Act draws a clear distinction between individual agreements or practices and categories thereof. The ordinary and literal meaning of 'category' supports the applicant's interpretation that block exemptions are contemplated by the Act. The Commission therefore has jurisdiction to consider and grant exemptions for categories of practices, provided the requirements of section 10(3) are met. The respondent's opposition was not supported by the Act, which is designed to apply broadly across all sectors and is not industry-specific. The court found that the Commission's refusal to consider block exemptions was incorrect and...

Court Disposition

Application granted. Declaratory relief issued confirming the Commission's jurisdiction to consider category exemptions. Costs awarded against the respondent.

Orders

  • It is declared that the Competition Commission has jurisdiction under section 10 of the Competition Act to exempt categories of practices defined by generic type, if such category meets the requirements of section 10(3).
  • It is declared that the Commission may exempt the specified category of practices relating to shipping liner conferences and similar practices, if the requirements of section 10(3) are met.