York Timbers Ltd and SA Forestry Company Ltd (15/IR/Feb01) [2001] ZACT 19 (9 May 2001)

York Timbers Ltd and SA Forestry Company Ltd (15/IR/Feb01) [2001] ZACT 19 (9 May 2001)

The Tribunal found that SAFCOL is dominant in the market for saw logs in Mpumalanga when the market is properly defined as the quantum of saw logs available to non-integrated sawmills. However, the Tribunal was not persuaded that SAFCOL's reduction of York Timbers' guaranteed supply constituted a refusal to supply within the meaning of section 8(d)(ii) of the Competition Act. SAFCOL undertook to allow York Timbers to compete for uncommitted supply on equal terms with other sawmills, and there was insufficient evidence of a restrictive practice. Even if a refusal to supply were established, the applicant failed to show that SAFCOL's conduct extended or created market power in the...

Citation
[2001] ZACT 19
Parties
Applicant: York Timbers Limited; Respondent: South African Forestry Company Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 May 2001
Case Number
15/IR/Feb01
Procedural Posture
Interim Relief Application / Application for Interim Relief Under Section 49 C of the Competition Act
Outcome
Application for interim relief dismissed; costs awarded to respondent.
Judges
D.H Lewis, N.M. Manoim, P Maponya
Legal Topics
Abuse of Dominance, Refusal to Supply, Interim Relief, Market Definition, Exclusionary Conduct
Competition Law Abuse of Dominance Refusal to Supply Interim Relief Market Definition Exclusionary Conduct

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 8 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

York Timbers Limited

Applicant

South African Forestry Company Limited

Respondent

Procedural Posture

Interim Relief Application / Application for Interim Relief Under Section 49 C of the Competition Act

Legal Issues

  1. 1 Whether SAFCOL is a dominant firm in the relevant market for saw logs in Mpumalanga.
  2. 2 Whether SAFCOL's reduction of guaranteed log supply to York Timbers constitutes a refusal to supply under section 8(d)(ii) of the Competition Act.
  3. 3 Whether the alleged refusal to supply amounts to an abuse of dominance under section 8(d)(ii) or section 8(c) of the Competition Act.

Ratio Decidendi

The Tribunal found that SAFCOL is dominant in the market for saw logs in Mpumalanga when the market is properly defined as the quantum of saw logs available to non-integrated sawmills. However, the Tribunal was not persuaded that SAFCOL's reduction of York Timbers' guaranteed supply constituted a refusal to supply within the meaning of section 8(d)(ii) of the Competition Act. SAFCOL undertook to allow York Timbers to compete for uncommitted supply on equal terms with other sawmills, and there was insufficient evidence of a restrictive practice. Even if a refusal to supply were established, the applicant failed to show that SAFCOL's conduct extended or created market power in the...

Court Disposition

Application for interim relief dismissed; costs awarded to respondent.

Orders

  • The application is dismissed.
  • The applicant is ordered to pay the respondent's costs on a party to party scale, including the costs of two legal representatives.