Dumpit Waste Removal (Pty) Ltd and City of Johannesburg / Pikitup Johannesburg (Pty) Ltd (21/IR/Apr02) [2004] ZACT 1; [2004] 1 CPLR 189 (CT) (5 January 2004)

Dumpit Waste Removal (Pty) Ltd and City of Johannesburg / Pikitup Johannesburg (Pty) Ltd (21/IR/Apr02) [2004] ZACT 1; [2004] 1 CPLR 189 (CT) (5 January 2004)

The Tribunal found that the provision of waste removal services in Johannesburg is reserved to the municipality by the Constitution and implemented through the Municipal Systems Act. The City of Johannesburg lawfully established Pikitup as a municipal entity and granted it exclusive rights to certain waste services via a Service Delivery Agreement. The exclusivity is a result of statutory and administrative decision, not market power. Therefore, Pikitup's monopoly over 'council services' does not constitute abuse of dominance under the Competition Act. Since interim relief requires the existence of a prohibited practice, and no such practice exists in the absence of market power, the...

Citation
[2004] ZACT 1
Parties
Applicant: Dumpit Waste Removal (Pty) Ltd; Respondent: City of Johannesburg; Respondent: Pikitup Johannesburg (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 January 2004
Case Number
21/IR/Apr02
Procedural Posture
Interim Relief Application / Final Determination
Outcome
Application for interim relief dismissed.
Judges
D. Lewis, N. Manoim, M.R Madlanga
Legal Topics
Abuse of Dominance, Exclusionary Acts, Municipal Services, Jurisdiction of Competition Act, Service Delivery Agreement
Competition Law Administrative Law Abuse of Dominance Exclusionary Acts Municipal Services Jurisdiction of Competition Act Service Delivery Agreement

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Parties

Dumpit Waste Removal (Pty) Ltd

Applicant

City of Johannesburg

Respondent

Pikitup Johannesburg (Pty) Ltd

Respondent

Procedural Posture

Interim Relief Application / Final Determination

Legal Issues

  1. 1 Whether the respondents abused a dominant position in the waste removal market by exclusionary acts.
  2. 2 Whether the Competition Tribunal has jurisdiction over the dispute given statutory regulation of waste removal.
  3. 3 Whether the applicant met the requirements for interim relief under section 49C of the Competition Act.

Ratio Decidendi

The Tribunal found that the provision of waste removal services in Johannesburg is reserved to the municipality by the Constitution and implemented through the Municipal Systems Act. The City of Johannesburg lawfully established Pikitup as a municipal entity and granted it exclusive rights to certain waste services via a Service Delivery Agreement. The exclusivity is a result of statutory and administrative decision, not market power. Therefore, Pikitup's monopoly over 'council services' does not constitute abuse of dominance under the Competition Act. Since interim relief requires the existence of a prohibited practice, and no such practice exists in the absence of market power, the...

Court Disposition

Application for interim relief dismissed.

Orders

  • The application for interim relief is dismissed.
  • Costs of the amendment application, on a party and party scale and including the costs of two legal representatives, are awarded to the applicant.