IN AN age when industry
collaboration is critical,
agents needs to be aware of
interactions with competitors
that could be deemed anticompetitive.
This was the topic of the
webinar, ‘Competition law do’s
and don’ts’, hosted by Asata,
with competition law expert,
Marylla Govender.
Asata members benefit
from the collaborative nature
of the association, and it
may provide benefits to
the market and consumer,
but agents need to know
when such collaborative
interactions become anticompetitive in the eyes of
the law.
Marylla says participating in
associations such as Asata
can be collaborative and
legitimate and may provide
benefits to the market and
consumer, but it could also
lead to association member
competitors engaging in anticompetitive behaviour.
Conduct that is anticompetitive and outright
prohibited is price fixing,
market sharing and collusive
tendering.
Marylla defines price fixing
as an agreement (written,
verbal or inferred from
conduct) among competitors
to raise, lower or stabilise
prices or competitive terms.
Market sharing occurs
when competitors agree to
divide or allocate customers,
suppliers or geographic areas
among themselves rather
than making independent
decisions as to where to
operate, who to source from
and which customers to
pursue.
Collusive tendering occurs
when competitors agree
together on who will or will
not bid on projects to allow
one of them to be successful.
This eliminates competition in
the procurement process, and
denies the public a fair price.
Dangerous liaisons
Members may not discuss or
agree with competitors on the
following, says Marylla:
The price at which they sell/
buy and timing, size and
scope of price adjustments;
Formulas or methods for
setting prices;
Any trading condition, such
as credit terms, warranties,
discounts or rebates,
delivery charges, profit
margins or advertising;
Quantities to be supplied or
sold in the market;
Whether to do business
with suppliers, customers or
competitors;
Confidential company plans
regarding output decisions
and information regarding
future offerings and
strategy;
Whether a company will/will
not tender for a project.
