Competition Commission v Tsutsumani Business Enterprises CC (COVCR113Sep20)
Competition Commission v Tsutsumani Business Enterprises CC (COVCR113Sep20) [2022] ZACT 97 (28 April 2022)
The Tribunal found that Tsutsumani met the financial threshold for dominance and exercised market power during the Covid-19 crisis, as SAPS was a price taker with urgent and large-scale demand for masks. Tsutsumani's mark-up and margin on masks supplied to SAPS were significantly above competitive benchmarks and not justified by any corresponding cost increases. The Tribunal rejected Tsutsumani's cost justifications, including administration, loan interest, retrenchment costs, and tax liabilities, as either unsubstantiated or irrelevant to the excessive pricing analysis. The Tribunal held tha…
Source excerpt
- Excessive Pricing
- Covid 19 Regulations
- Dominance
- Administrative Penalty
- Consumer Protection Regulations