Competition Commission v Media 24 Proprietary Limited (CR154Oct11/REM144Sep15) [2016] ZACT 86; [2016] 2 CPLR 968 (CT) (6 September 2016)

Competition Commission v Media 24 Proprietary Limited (CR154Oct11/REM144Sep15) [2016] ZACT 86; [2016] 2 CPLR 968 (CT) (6 September 2016)

The Tribunal found that competition had not been restored to the Goldfields community newspaper market since Media24's contravention of section 8(c) of the Competition Act. Media24 failed to discharge the evidential burden to show that effective competition had returned, and the Commission led sufficient evidence that new entrants remained weak and barriers to entry persisted. The Tribunal rejected the Commission's proposed interdict as overbroad and supply-limiting, and found the investment remedy too uncertain and risky to guarantee restoration of competition. Instead, the Tribunal imposed a credit guarantee remedy, requiring Media24 to offer 90-day credit terms for printing and...

Citation
[2016] ZACT 86
Parties
Applicant: Competition Commission; Respondent: Media 24 Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 September 2016
Case Number
CR154Oct11/REM144Sep15
Procedural Posture
Remedy Application / Remedies Hearing Following Merits Decision
Outcome
Remedy granted: declaratory order and credit guarantee remedy imposed; interdict and investment remedy refused.
Judges
Norman Manoim, Yasmin Carrim, Merle Holden
Legal Topics
Abuse of Dominance, Predatory Pricing, Remedies for Prohibited Practices, Section 8c Conduct, Barriers to Entry
Competition Law Commercial and Corporate Abuse of Dominance Predatory Pricing Remedies for Prohibited Practices Section 8c Conduct Barriers to Entry

Case Brief

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Parties

Competition Commission

Applicant

Media 24 Proprietary Limited

Respondent

Procedural Posture

Remedy Application / Remedies Hearing Following Merits Decision

Legal Issues

  1. 1 Whether competition has been restored to the Goldfields community newspaper market since the prohibited conduct.
  2. 2 What restorative remedy is appropriate to address the contravention of section 8(c) of the Competition Act.
  3. 3 Whether an interdict, investment remedy, or credit guarantee remedy is justified and effective.

Ratio Decidendi

The Tribunal found that competition had not been restored to the Goldfields community newspaper market since Media24's contravention of section 8(c) of the Competition Act. Media24 failed to discharge the evidential burden to show that effective competition had returned, and the Commission led sufficient evidence that new entrants remained weak and barriers to entry persisted. The Tribunal rejected the Commission's proposed interdict as overbroad and supply-limiting, and found the investment remedy too uncertain and risky to guarantee restoration of competition. Instead, the Tribunal imposed a credit guarantee remedy, requiring Media24 to offer 90-day credit terms for printing and...

Court Disposition

Remedy granted: declaratory order and credit guarantee remedy imposed; interdict and investment remedy refused.

Orders

  • It is declared that Media24's pricing conduct in the Goldfields community newspaper market during January 2004 to February 2009 contravened section 8(c) of the Competition Act.
  • Media24 must ensure that all current and new publications in the Goldfields market are entitled to 90-day credit terms for printing and distribution services with Paarl Coldset and On The Dot, on specified conditions for three years.