Media 24 Proprietary Limited v Competition Commission of South Africa (146/CAC/Sep16)
Media 24 Proprietary Limited v Competition Commission of South Africa (146/CAC/Sep16) [2018] ZACAC 1; 2018 (4) SA 278 (CAC); [2018] 1 CPLR 56 (CAC) (19 March 2018)
The Competition Appeal Court held that the appropriate benchmark for assessing predatory pricing under section 8(c) of the Competition Act is average avoidable costs (AAC), not average total costs (ATC) plus intention. The Tribunal erred by applying ATC and predatory intent, which is not supported by the statutory wording or economic principles. The evidence showed that Forum's revenue exceeded its avoidable costs during the complaint period, and the inclusion of certain cost categories as avoidable was not justified on the probabilities. Opportunity costs should not be included in AAC. As th…
Source excerpt
- Predatory Pricing
- Average Avoidable Costs
- Dominant Firm Conduct
- Exclusionary Practices
- Cost Benchmarking
- Competition Act Section 8