Johannesburg - The Competition Tribunal yesterday reserved its decision on the application by Spar, Shoprite Checkers and Pick n Pay to prevent it from hearing a complaint by Massmart that the retailers were preventing it from competing equally in certain markets.
Spar and Shoprite also wanted the tribunal to defer its proceedings on the matter until the completion of the ongoing market inquiry into the grocery retail sector has been concluded.
Massmart, owners of Game, DionWired and Builders Warehouse, argued that clauses in agreements between the retailers and their landlords frustrated the growth aspirations of Game and, therefore, lessened competition.
During the two-day proceedings, legal representatives of the retail companies poked holes in Massmart’s case. Frank Snyckers on behalf of Massmart said the inquiry’s outcome was an inadmissible opinion that was not binding on anyone.
He said the market inquiry could not be the basis to halt the proceedings at the tribunal.
“The inquiry is broader and general and is not aimed at making a finding or validating a fact. The Tribunal will be asked to look at a specific issue,” said Frank Snyckers.
He said there was no duplication between the proceedings it wanted to institute at the tribunal and the market inquiry. Snyckers said the tribunal was the only body that could issue an authoritative determination on Massmart’s concerns.
BUSINESS REPORT