Competition Law & Anti-Trust

Competition law applies to all businesses in South Africa, regardless of size. The Competition Act No. 89 of 1998 (“the Competition Act”) regulates a company’s (which is referred to as a “firm” in the Act and includes not only companies, but also sole traders, partnerships, persons and trusts.)

It regulates how businesses may deal with competitors, suppliers, distributors, and customers. It does so by prohibiting restrictive practices (these are practices which may restrict competition within a specific market) and the abuse of dominance by any firm. The Act also seeks to promote and maintain competition in a particular market by regulating the merging and/or amalgamation of entities/ assets.

Competition law applies to all economic activity in, or affecting, South Africa

The Competition Act’s objectives are achieved by:

• prohibiting certain conduct outright i.e., collusive arrangements to fix prices, divide markets or rig bids, and the imposition of minimum resale prices (per se practices);
• prohibiting agreements between businesses that lead to a substantial prevention or lessening of competition;
• prohibiting the abuse of a dominant position, by a dominant firm (a firm with market power);
• reviewing certain mergers/acquisitions and joint ventures to ensure these transactions do not lead to a substantial prevention or lessening of competition; and
• giving the Competition Commission and Competition Tribunal a wide range of powers to investigate, prosecute and punish anti-competitive conduct.

Our dedicated competition law team has the expertise and experience to offer guidance and provide solutions on all aspects relating to this developing area of the law. We pride ourselves in offering quick, cost-effective and customised strategic guidance in navigating matters of competition law.

For specific legal advice tailored to your situation, it’s best to consult with one of our experienced Competition Law attorneys at Adams & Adams.

Yes, your company can face serious penalties for collusion under South African competition law, including administrative penalties of up to 10% of annual turnover (for a first offence), and 25% of annual turnover (for a repeat offence). Individuals may also face criminal sanctions in certain cases.

Collusion refers to anti-competitive agreements or practices between companies, such as:

• Price fixing
• Market division (area or product/ service)
• Bid rigging/ collusive tendering
• Coordinated tendering

These practices are strictly prohibited under the Competition Act. There are also other restrictive practices involving agreements between competitors which are prohibited (although they can be potentially justified with so-called “efficiency defences” depending on the facts of the particular case) and can lead to the imposition of penalties.

For specific legal advice tailored to your situation, it’s best to consult with one of our experienced Competition Law attorneys at Adams & Adams.

A merger occurs when one firm gains control over another’s business or assets. If prescribed financial thresholds are met, or if a transaction meets other mandatory notification requirements, a business must notify the Competition Commission before implementation of the transaction. The Commission assesses whether the merger is likely to substantially prevent or lessen competition and may approve, approve with conditions, or prohibit it. Certain large transactions may require approval from the Competition Tribunal.

To seek guidance on whether or not a transaction is notifiable, and to ensure you receive advice that fits your unique business needs, connect with one of our trusted Competition Law attorneys at Adams & Adams.

A cartel is a group of independent companies that collude to limit competition, typically by fixing prices, dividing markets (products/ services or areas), or rigging bids. Under South African competition law, cartels are considered the most serious form of anti-competitive conduct and are strictly prohibited under Section 4(1)(b) of the Competition Act. The Competition Commission investigates suspected cartels and refers cases to the Competition Tribunal, which can impose penalties.

Leniency may be available to a member of a cartel who is first to come forward regarding potential collusive conduct.

For specific legal advice tailored to your business needs, it’s best to consult with one of our experienced Competition Law attorneys at Adams & Adams.

Horizontal relationships exist between companies that compete or could potentially compete with each other (i.e. companies on the same level of a supply chain). By contrast, vertical relationships exist between a firm and its suppliers, distributors or customers . In other words, a vertical relationship exists between entities that are at different levels in the supply chain (such as a manufacturer and a distributor or a distributor and retailer).

The Competition Act prohibits certain conduct between parties in vertical and horizontal relationships in sections 4 and 5, respectively. Certain types of conduct are viewed as so egregious that it is automatically prohibited and cannot be justified, such as the setting of minimum resale prices in the case of vertical relationships and price collusion in the case of horizontal relationships.

To ensure you receive advice that fits your unique circumstances, connect with one of our trusted Competition Law attorneys at Adams & Adams.

The Competition Act is enforced by the Competition Commission, the Competition Tribunal and the Competition Appeal Court.

The Competition Commission:

• Receives and investigates complaints in respect of prohibited practices.
• Conducts market inquiries.
• Conducts all initial investigations in respect of both mergers and prohibited practices
• Decides whether an intermediate merger (or small merger, where applicable) is permissible or not.
• Grants exemptions to firms.
• Grants leniency to firms pursuant to a successful application under the corporate leniency policy.

The Competition Tribunal:

• Adjudicates matters referred to it by the Competition Commission.
• Decides whether to allow large mergers.
• Adjudicates appeals in respect of decisions by the Competition Commission.

The Competition Appeal Court:

• Is a separate court of law, hearing appeals against decisions by the Competition Tribunal.

If a firm is found guilty of abusing its dominant position in the market, it may face:

• Administrative penalties (fines) of up to 10% of its annual turnover in South Africa and its exports from South Africa during the preceding financial year’s turnover
• Administrative penalties of up to 25% of its annual turnover for repeat offences
• Orders to cease the conduct and take corrective action
• Damages claims from affected parties
• Reputational damage and loss of public trust
• Potential criminal liability for directors in extreme cases

For specific legal advice tailored to your situation, it’s best to consult with one of our experienced Competition Law attorneys at Adams & Adams.

Ensuring compliance with South Africa’s competition law involves more than just avoiding obvious violations like price fixing or market division. It requires a proactive approach – such as implementing internal policies, training all market-facing staff (especially in sales, procurement and all executives), and reviewing contracts and business practices regularly.

However, because each business operates in a unique context, a one-size-fits-all approach can be risky. Adams & Adams offers tailored legal guidance, including customised competition and compliance training aimed at assesses your risk exposure. As part of the review an training, Adams & Adams can review pricing; discount and distribution practices, vet joint ventures; exclusivity arrangements and information sharing practices; conduct merger assessments early in deal planning, and set up dawn raids and investigations response plans.

To ensure you receive advice that fits your unique circumstances, connect with one of our trusted Competition Law attorneys at Adams & Adams.

Restrictive practices are typically identified through patterns of conduct or agreements that may limit competition, such as price fixing, market allocation, or exclusive dealing. These can be uncovered through complaints, market inquiries, leniency applications or investigations by the Competition Commission.

Red flags include price discussions with competitors, market/customer allocations, bid coordination, exchange of sensitive information, exclusivity that forecloses rivals, and resale price maintenance.

However, determining whether a practice is legally “restrictive” depends on the specific facts, market context, and legal thresholds. What may seem like a standard business arrangement could, under scrutiny, raise compliance concerns.

Adams & Adams advises clients on how to structure agreements/ policies to avoid unintended violations. If you’re unsure whether your business practices could be seen as potentially restrictive, Adams and Adams’ Competition Law Team is available to provide comprehensive advice and further assistance as necessary.

Yes. The same rules apply “online” and “offline”. E-commerce is not only governed by digital and consumer protection laws, but also competition law which applies to online business practices to the same extent as those that take place in what is often referred to as “brick and mortar” shops. This includes how prices are set, how platforms treat competitors, and how data is used to influence market power.

If your business operates in the digital space, it’s essential to understand how competition law intersects with your online strategy. At Adams & Adams, we offer tailored legal advice to help you navigate these evolving risks and stay compliant in a fast-changing regulatory environment.

Competition law is a critical consideration for all businesses across all industries, particularly those involved in commercial transactions, strategic partnerships, supply chain arrangements, or market expansion.

If your business is:

• Negotiating complex commercial agreements
• Engaging in mergers, acquisitions, or joint ventures
• Operating in a concentrated or highly regulated market
• Expanding into digital or cross-border markets
• Concerned about pricing, exclusivity, or distribution strategies
• Unsure of its compliance with principles of competition law

…then competition law advice is not just helpful—it’s essential.

At Adams & Adams, we integrate competition law insights into broader commercial legal strategies, helping clients structure deals, manage risk, and remain compliant while pursuing growth.

Get in touch to discuss how we can support your business with practical, commercially focused legal advice.