Competition Commission v Airports Company South Africa Ltd (016725) [2013] ZACT 46 (7 June 2013)

Competition Commission v Airports Company South Africa Ltd (016725) [2013] ZACT 46 (7 June 2013)

The Tribunal confirmed that Airports Company South Africa Ltd contravened section 5(1) of the Competition Act by maintaining an exclusive arrangement with ORTIATA for metered taxi services at OR Tambo International Airport, which substantially lessened competition in the relevant market. The consent agreement, as proposed by the parties, provides for the issuance of a new tender for metered taxi operators within six months and the introduction of measures to allow shuttle services to compete directly with metered taxi services. These remedial steps are deemed sufficient to address the anti-competitive effects identified. The Tribunal confirmed the consent agreement and its addendum as an...

Citation
[2013] ZACT 46
Parties
Applicant: Competition Commission; Respondent: Airports Company South Africa Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 June 2013
Case Number
016725
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; proceedings between the Commission and ACSA concluded.
Judges
N Manoim, M Mazwai, A Ndoni
Legal Topics
Vertical Restrictive Practices, Exclusive Dealing, Section 5 1 Competition Act, Airport Transport Services, Tender Process, Remedial Measures
Competition Law Vertical Restrictive Practices Exclusive Dealing Section 5 1 Competition Act Airport Transport Services Tender Process Remedial Measures

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Parties

Competition Commission

Applicant

Airports Company South Africa Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Airports Company South Africa Ltd contravened section 5(1) of the Competition Act by entering into an exclusive arrangement with ORTIATA for metered taxi services at OR Tambo International Airport.
  2. 2 Whether the exclusive agreement substantially prevented or lessened competition in the market for metered taxi and shuttle services at OR Tambo International Airport.
  3. 3 Whether the proposed consent agreement and remedial measures adequately address the anti-competitive effects identified.

Ratio Decidendi

The Tribunal confirmed that Airports Company South Africa Ltd contravened section 5(1) of the Competition Act by maintaining an exclusive arrangement with ORTIATA for metered taxi services at OR Tambo International Airport, which substantially lessened competition in the relevant market. The consent agreement, as proposed by the parties, provides for the issuance of a new tender for metered taxi operators within six months and the introduction of measures to allow shuttle services to compete directly with metered taxi services. These remedial steps are deemed sufficient to address the anti-competitive effects identified. The Tribunal confirmed the consent agreement and its addendum as an...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; proceedings between the Commission and ACSA concluded.

Orders

  • The consent agreement between the Competition Commission and Airports Company South Africa Ltd is confirmed as an order of the Tribunal.
  • Airports Company South Africa Ltd must issue a new tender for metered taxi operators within six months from the date of confirmation of the consent agreement.