Shoprite charged with anti-competitive behaviour

An employee restocks shelves with food products inside a Shoprite Holdings Ltd. store in Cape Town, South Africa, on Wednesday, Dec. 21, 2016. South Africa was a bright spot for banks on the continent in 2016, with stocks shrugging off the nation's economic woes to head for the third-best performance in the past decade. Photographer: Dean Hutton/Bloomberg

South Africa’s Competition Commission said on Thursday it had charged retailer Shoprite and its subsidiary Computicket with anti-competitive behaviour, and recommended a fine.

The commission said Shoprite and the event ticket seller had signed exclusive agreements that gave Computicket the ability to discriminate between large and small customers on prices.

The commission said the discrimination had forced third parties to engage with Computicket, excluding its competitors.

“The Commission has asked the Tribunal to impose an administrative penalty of 10 per cent of Computicket and Shoprite Checkers annual turnover,” the commission said in a statement in Johannesburg.

Shoprite was not immediately available to comment.

As a result, shares in the country’s biggest supermarket chain fell more than 4 per cent after the announcement, but had recovered to 183 rand, a decline of 1.84 per cent in early trading.

The case marks the second time the commission has referred Computicket to the Competition Tribunal, with a decision on similar charges.

This is the first time that Shoprite has been added as a respondent to the charges.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.