Nuco Chrome (Pty) Ltd and Xstrata Rand York Minerals (Pty) Ltd (31/IR/Apr04) [2004] ZACT 51; [2004] 2 CPLR 341 (CT) (18 August 2004)

Nuco Chrome (Pty) Ltd and Xstrata Rand York Minerals (Pty) Ltd (31/IR/Apr04) [2004] ZACT 51; [2004] 2 CPLR 341 (CT) (18 August 2004)

The Tribunal found that Nuco Chrome failed to provide sufficient evidence of a prohibited practice under the Competition Act. The applicant did not establish the existence of an exclusive supply agreement between Xstrata and Rand York that substantially lessened competition. There was inadequate evidence of market definition, market share, or dominance by Xstrata. The Tribunal noted that Samancor was the largest supplier and that alternative sources of chrome sand existed. Nuco Chrome did not demonstrate the anti-competitive effects required under sections 5(1), 8(c), or 9. The requirements for interim relief were not met, as the applicant failed to discharge the onus of proving a...

Citation
[2004] ZACT 51
Parties
Applicant: Nuco Chrome (Pty) Ltd; Respondent: Xstrata South Africa (Pty) Ltd; Respondent: Rand York Minerals (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 August 2004
Case Number
31/IR/Apr04
Procedural Posture
Interim Relief Application / Application for Interim Relief Under Section 49 C of the Competition Act; Heard and Dismissed
Outcome
Application for interim relief dismissed; costs awarded against the applicant.
Judges
D.H. Lewis, N.M. Manoim, L.P. Reyburn
Legal Topics
Vertical Agreements, Refusal to Supply, Abuse of Dominance, Price Discrimination, Interim Relief, Market Definition
Competition Law Vertical Agreements Refusal to Supply Abuse of Dominance Price Discrimination Interim Relief Market Definition

Case Brief

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Parties

Nuco Chrome (Pty) Ltd

Applicant

Xstrata South Africa (Pty) Ltd

Respondent

Rand York Minerals (Pty) Ltd

Respondent

Procedural Posture

Interim Relief Application / Application for Interim Relief Under Section 49 C of the Competition Act; Heard and Dismissed

Legal Issues

  1. 1 Whether the supply agreement between Xstrata and Rand York constitutes a prohibited vertical agreement under section 5(1) of the Competition Act.
  2. 2 Whether Xstrata's refusal to supply Nuco Chrome amounts to an abuse of dominance under section 8(c) of the Competition Act.
  3. 3 Whether Xstrata engaged in price discrimination in contravention of section 9 of the Competition Act.

Ratio Decidendi

The Tribunal found that Nuco Chrome failed to provide sufficient evidence of a prohibited practice under the Competition Act. The applicant did not establish the existence of an exclusive supply agreement between Xstrata and Rand York that substantially lessened competition. There was inadequate evidence of market definition, market share, or dominance by Xstrata. The Tribunal noted that Samancor was the largest supplier and that alternative sources of chrome sand existed. Nuco Chrome did not demonstrate the anti-competitive effects required under sections 5(1), 8(c), or 9. The requirements for interim relief were not met, as the applicant failed to discharge the onus of proving a...

Court Disposition

Application for interim relief dismissed; costs awarded against the applicant.

Orders

  • The application is dismissed.
  • Nuco Chrome is ordered to pay Xstrata's costs on a party and party scale, including the costs of two legal representatives.