Competition Commission vs South African Airways (2005)

Author :

Eulalie Metton; John Luiz

Pages :

2

Product Type :

Supplements the (A) case

Reference # :

2010-14c

Teaching Note :

Epilogue

Institute:

Wits Business School

Setting:

South Africa

Year:

2005

Keywords:

Economics, competition

Summary/Abstract:

2005 – The Tribunal’s Decision The Tribunal found SAA in contravention of the Act, that is that its incentive schemes had been exclusionary and that it had abused its dominant position in the market. The Tribunal also noted while it wasn’t necessary to consider the consumer to prove the case: “…it is highly likely that this foreclosure has had adverse effects on consumers… consumers are likely to have made wrong choices of airlines, chosen the wrong prices and, essentially, it has led to the wrong set of outputs.” SAA was ordered to cease the incentive schemes and fined R45 million. At the time, this was the highest penalty yet imposed by the Tribunal.