CAPE TOWN – Shoprite Holdings subsidiary Computicket was dealt a heavy blow after the Competition Appeal Court dismissed with costs its appeal against the ruling that the company was guilty of abuse of dominance.
In a statement on Wednesday, the Commission said it welcomed the decision, saying it was satisfied that the Competition Appeal Court dismissed the appeal in its entirety and with costs.
In January this year, the Competition Tribunal found Computicket guilty of abuse of dominance in contravention of the Competition Act for the period between 2005 and 2010. The company was ordered to pay an administrative penalty of R20 million.
The Tribunal found that Computicket’s exclusive agreements with inventory providers had resulted in anti-competitive effects during the period 2005 to 2010. During the proceedings, the Commission was able to show that the agreements resulted in the foreclosure of the market to effective competition.
“The Tribunal accepted evidence concerning supra-competitive pricing effects, a decrease in supply by inventory providers, a reluctance by Computicket to timeously make use of available advances in technology and innovation as well as a lack of choices for end consumers, all of which cumulatively established the anti-competitive effects of the agreements.