Competition Commission of South Africa and Others and United South African Pharmacies and Others (04/CR/Jan02) [2003] ZACT 4 (22 January 2003)

Competition Commission of South Africa and Others and United South African Pharmacies and Others (04/CR/Jan02) [2003] ZACT 4 (22 January 2003)

The Tribunal held that the members of USAP were not properly joined as respondents, but allowed the Commission and AACMED an opportunity to rectify this by citing the relevant members. The Tribunal found that the Commission must specify the timing and identity of alleged wrongdoers and granted leave to file additional affidavits for this purpose. The Tribunal rejected USAP's argument that AACMED could not seek relief beyond the Commission's referral, confirming AACMED's right to intervene and seek distinct relief. The Tribunal determined that both the Commission and AACMED had sufficiently pleaded the relevant market and the alleged boycott, and that deficiencies in market definition or...

Citation
[2003] ZACT 4
Parties
Applicant: Competition Commission of South Africa; Applicant: Anglo American Medical Scheme; Applicant: Engen Medical Fund; Respondent: United South African Pharmacies; Respondent: Members of United South African Pharmacies
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 January 2003
Case Number
04/CR/Jan02
Procedural Posture
Exception Application / Decision on Exception Applications Prior to Filing of Answer
Outcome
Exceptions regarding non-joinder, timing, and identification of wrongdoers were upheld in part, with leave granted to rectify pleadings. Exceptions regarding market definition, vagueness, and AACMED's entitlement to relief were dismissed. No order as to costs.
Judges
N. Manoim, D. Lewis, M. Holden
Legal Topics
Horizontal Agreements, Market Definition, Non Joinder, Pleading Requirements, Intervention, Boycott
Competition Law Horizontal Agreements Market Definition Non Joinder Pleading Requirements Intervention Boycott

Case Brief

Summary, issues, holding and outcome

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Parties

Competition Commission of South Africa

Applicant

Anglo American Medical Scheme

Applicant

Engen Medical Fund

Applicant

United South African Pharmacies

Respondent

Members of United South African Pharmacies

Respondent

Procedural Posture

Exception Application / Decision on Exception Applications Prior to Filing of Answer

Legal Issues

  1. 1 Whether the members of United South African Pharmacies were properly joined as respondents.
  2. 2 Whether the Commission and AACMED have adequately pleaded the relevant market for purposes of section 4 of the Competition Act.
  3. 3 Whether the Commission and AACMED have set out sufficient facts to enable the respondents to plead to the allegations of a boycott and prohibited practices.

Ratio Decidendi

The Tribunal held that the members of USAP were not properly joined as respondents, but allowed the Commission and AACMED an opportunity to rectify this by citing the relevant members. The Tribunal found that the Commission must specify the timing and identity of alleged wrongdoers and granted leave to file additional affidavits for this purpose. The Tribunal rejected USAP's argument that AACMED could not seek relief beyond the Commission's referral, confirming AACMED's right to intervene and seek distinct relief. The Tribunal determined that both the Commission and AACMED had sufficiently pleaded the relevant market and the alleged boycott, and that deficiencies in market definition or...

Court Disposition

Exceptions regarding non-joinder, timing, and identification of wrongdoers were upheld in part, with leave granted to rectify pleadings. Exceptions regarding market definition, vagueness, and AACMED's entitlement to relief were dismissed. No order as to costs.

Orders

  • The Commission and AACMED are granted leave to properly join the relevant members of USAP as respondents.
  • The Commission is granted leave to file an additional affidavit specifying the timing and identity of alleged wrongdoers.