COMPETITION REGULATION
Colluders face follow-on damages claims
Evidence seems to suggest high administrative penalties alone are inadequate in achieving optimal deterrence
SA finds itself caught in slow or no economic growth worsened by the ratings agencies’ downgrades of the economy and financial institutions. In these times, temptation is high for firms and their corporate leaders to engage in anticompetitive conduct such as price-fixing as a short-term profitability stopgap in response to the economic downturn. It is also in these very times that competition regulation tools need to be at the ready, especially given the disproportionate and detrimental effects cartel conduct and other forms of anticompetitive behaviour can have on the poor during economic downturns. Recent developments in the litigation of follow-on damages by persons affected by anticompetitive behaviour, such as firms and consumers, will usher in another less well-known competition-law enforcement tool. Follow-on damages have been part of the Competition Act since it came into force. The particular provisions of the act allow for any person who has suffered loss or damage as a re...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.