The local rooibos market in South Africa comprises 8 large processing firms which account for approximately 90% of the market, with Rooibos Limited controlling 60% of the market. Similar to other processing firms, Rooibos Limited purchases large quantities of tea from commercial farmers and processes it into bulk tea which is subsequently sold to packaging firms to pack into finished products. A case against Rooibos Limited has recently been referred to the Competition Tribunal alleging exclusionary abuse of dominance in contravention of section 8(d)(i) of the Competition Act.
A summary of some of the major mergers, acquisitions and enforcement cases in the region
A summary of some of the major mergers, acquisitions and enforcement cases in the region.
Representatives of competition authorities from various African countries frankly discussed cartel penalties, settlement and leniency programmes at the CCRED Annual Competition and Economic Regulation Week in March 2015 in Zimbabwe. In this discussion, authorities highlighted the challenges of enforcement actions involving complex collusive conduct, the need for deterrent penalties, the lack of local case precedent developed through rigorous contested hearings, and the resource constraints which hamper enforcement actions and deterrence in particular.