Tribunal awards costs against party withdrawing
On 21 November 2012 the Competition Tribunal awarded costs
against the Protea Group in respect of a complaint initiated, and
interim relief application launched, by Protea against the Invensys
Protea is a former distributor of the Invensys Group's
products in South Africa. Protea alleged that the manner in which
Invensys terminated its distribution arrangement amounted to an
abuse of dominance and was, as result, in contravention of the
Protea filed a direct referral of the matter to the Tribunal and
applied for interim relief after the Competition Commission issued
a notice of non-referral. Following an exception filed by Invensys,
Protea withdrew their direct referral and interim relief
applications, but did not tender to pay for the costs of the
aborted applications. Invensys responded by bringing an application
The Tribunal decided that, despite the stated intention of Protea
to reinstate their referral, a decision to directly refer had
commenced and terminated when it was instituted before and
subsequently withdrawn from the Tribunal. Invensys was therefore
entitled to be awarded costs for both the direct referral and the
interim relief application, as these actions were inseparable. The
Tribunal awarded costs on a party and party scale.
The Competition Commission recently found a dual distribution restraint to amount to a market allocation agreement between competitors, which is outright unlawful under the Competition Act, 89 of 1998.
Sub-Saharan Africa is primed for an era of sustainable growth. As other markets across Latin America and Asia face short-term challenges and many advanced economies decelerate, the outlook remains encouraging for sub-Saharan Africa to gather speed and create greater opportunities for its rapidly growing population.
Previous updates summarised the main provisions of the United Arab Emirates Federal Competition Law (Federal Law No. (4) of 2012) which came into force on 23 February 2013.
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