The efficiency defence in South African competition law: application and recommendations
| dc.contributor.advisor | Kitching, Karlien | |
| dc.contributor.advisor | Brits, Pieter | |
| dc.contributor.author | Marais, Adam Johannes | |
| dc.date.accessioned | 2015-10-29T07:40:41Z | |
| dc.date.available | 2015-10-29T07:40:41Z | |
| dc.date.issued | 2012 | |
| dc.description.abstract | English: Economic efficiency is used as a proxy for the social welfare of a country's citizens and therefore it is held that if the efficiency of a country improves, so will the social welfare of its citizens. The efficiency of markets determine a country's overall efficiency and social welfare and as a result, the purpose of Competition Law has generally been to increase the efficiency of a county's markets. The efficiency of markets in turn, is increased by competition and therefore, Competition Law is generally aimed at maintaining and promoting competition, which is also the case in South Africa. Stated differently, efficiency is the purpose of Competition Law and competition the vehicle by which efficiency is enhanced. Central to Competition Law is the concept of the “efficiency defence.” In terms of the efficiency defence, efficiencies are used to justify conduct that limits competition within a relevant market (anti-competitive conduct). The general presumption is that anticompetitive conduct is detrimental to efficiency. This is not always true and in some instances anti-competitive conduct may in fact result in increased economic efficiency. The efficiency defence is the tool used to justify anti-competitive conduct in circumstances where limiting competition will result in increased economic efficiency. Despite the obvious flexibility the efficiency defence provides to competition authorities in their quest to enhance the efficiency of an economy, most jurisdictions have been reluctant to accept efficiencies as a defence against anti-competitive conduct. The South African Competition Act is still in its infancy and as a result, there are a number of grey areas pertaining to its interpretation and application. One of these areas of uncertainty pertains to the interpretation and application of the efficiency defence in South African competition matters. To date, the competition authorities have only once interpreted the efficiency defence and that was in the merger between Trident Steel (Pty) Ltd and Dorbyl (Pty) Ltd, more than 11 years ago.1174 This study contributes to the legal certainty pertaining to the interpretation and application of the efficiency defence in South African competition matters by making certain recommendations on its interpretation and application. These recommendations are based upon a comparison between South African, US and EU Competition Law jurisprudence. In addition, all recommendations are in line with contemporary economic theory, which functions as the validating criterion. The principle recommendation of this study is the recommendation that the consumer welfare standard should be employed in South African competition matters instead of the total welfare standard currently employed. This recommendation is based upon the South African economic environment which includes high levels of market concentration and high price mark-ups in the manufacturing industry. The implications of using the consumer welfare standard will be that the burden of proof to discharge in the efficiency defence is much higher than it is under the total welfare standard. The reason being that under the consumer welfare standard consumers have to benefit from efficiencies for them to be able to justify anti-competitive conduct whereas it is not the case under the total welfare standard. | en_ZA |
| dc.description.abstract | Afrikaans: Doeltreffendheid word beskou as 'n aanduiding van die sosiale welvaart van 'n land se burgers. Daarom word dit beskou dat die sosiale welvaart van 'n land gesamentlik toeneem met 'n toename in die doeltreffenheid van 'n land. 'n Land se algehele doeltreffendheid en sosiale welvaart is weer op hulle beurt afhanklik van die doeltreffendheid van 'n land se markte en daarom is Mededingingsreg gewoonlik daarop gemik om die markte van 'n land te reguleer. Verder word dit aanvaar dat mededinging aanleiding gee tot 'n toename in die doeltreffendheid van markte en gevoglik is die hoofdoel van Mededingingsreg in die algemeen, soos die geval in Suid-Afrika, om mededinging te beskerm en te bevorder. Die doeltreffendheidsverweer is 'n uiters belangrike beginsel in Mededingingsreg deurdat hierdie verweer dit moontlik maak vir die respondent om die doeltreffendhede wat voortspruit uit sy verbode handeling te gebruik om die verbode handeling te regverdig. Hierdie verbode handelinge is handelinge wat mededinging in die toepaslike mark beperk of belemmer (hierna beperkende handelinge). Die algemene veronderstelling is dat beperkende handelinge tot 'n afname in doeltreffendheid lei. Dit is egter nie altyd die geval nie en onder sekere omstandighede kan beperkende handelinge 'n toename in doeltrefendheid teweebring. Onder hierdie omstandighede is dit die doeltreffendheidsverweer wat toegepas word om te verseker dat 'n beperkende handeling wat tot 'n toemane in doeltreffendheid lei nie verbied word nie. Ten spyte van die buigsaamheid wat die doeltreffendheids aan mededingingsowerhede verskaf in hulle strewe na doeltreffendheid, is die meeste jurisdiksies grootliks gekant teen die idee dat doeltreffendhede gebruik kan word om beperkende handelinge te regverdig. Die Suid-Afrikaanse Wet op Mededinging het slegs 13 jaar gelede in werking getree en gevolglik bestaan daar steeds talle grys areas rondom die uitleg en toepassing daarvan. Die uitleg en toepassing van die doeltreffendheidsverweer is een van hierdie grys areas. Tot op hede is die uitleg van die doeltreffendheidsverweer nog slegs in een hofsaak oorweeg naamlik in die samesmelting tussen Trident Steel (Edms) Bpk and Dorbyl (Edms) Bpk. Die Mededingings Tribunaal is egter erg gekritiseer vir sy uispraak in hierdie saak omdat dit versuim het om talle onsekerhede rondom die uitleg en toepassing van die doeltreffendheidsverweer aan te spreek. Hierdie studie dra by tot die sekerheid rondom die uitleg en toepassing van die doeltreffendheidsverweer in Suid-Afrikaanse mededingings aangeleenthede deurdat hierdie studie verskeie aanbevelings maak rondom die uitleg en interpretasie van die doeltreffendheidsverweer. Hierdie aanbevelings is verky deur die Suid-Afrikaanse regspraak met die regspraak van die V.S.A. en die E.U. te vergelyk. Verder is alle aanbevelings in hierdie studie in lyn met huidige ekonomiese teorie wat as die waarmerkings standaard daarvan dien. Die vernaamste aanbeveling is die aanbeveling dat die verbruiker welvaarts standaard in Suid-Afrikaanse mededingings aangeleenthede toegepas moet word in plaas van die algehele welvaart standaard wat huidiglik toegepas word. Hierdie aanbeveling is gebaseer op die Suid-Afrikaanse ekonomiese omgewing wat gekenmerk word aan onder andere hoë vlakke van mark konsentrasie en buitensporige pryse in die vervaardigingsbedryf. Die vernaamste gevolg daarvan om die verbruikers welvaart standaard te gebruik is die feit dat die bewyslas wat bevredig moet word onder die verbruikers welvaart standaard aansienlik hoër is as die bewyslas wat onder die algehele welvaart standaard bevredig moet word. Die rede vir hierdie hoër bewyslas is die feit dat doeltreffendhede slegs beperkende handelinge kan regverdig onder die verbruikers welvaart standaard indien verbruikers deur die beperkende handeling bevoordeel word. Onder die algehele welvaart standaard is dit onnodig vir doeltreffendhede om verbruikers te bevoordeel. | af |
| dc.identifier.uri | http://hdl.handle.net/11660/1484 | |
| dc.language.iso | en | en_ZA |
| dc.publisher | University of the Free State | en_ZA |
| dc.rights.holder | University of the Free State | en_ZA |
| dc.subject | Dissertation (LL.M. (Mercantile Law)--University of the Free State, 2012 | en_ZA |
| dc.subject | Antitrust law -- South Africa | en_ZA |
| dc.subject | Competition -- South Africa | en_ZA |
| dc.subject | Weighing | en_ZA |
| dc.subject | Welfare standard | en_ZA |
| dc.subject | Tradeoff | en_ZA |
| dc.subject | Total welfare | en_ZA |
| dc.subject | Social welfare | en_ZA |
| dc.subject | Structure Conduct Performance Paradigm | en_ZA |
| dc.subject | Efficiency defence | en_ZA |
| dc.subject | Deadweight-loss | en_ZA |
| dc.subject | Consumer welfare | en_ZA |
| dc.subject | Consumer surplus | en_ZA |
| dc.subject | Abuse of market power | en_ZA |
| dc.title | The efficiency defence in South African competition law: application and recommendations | en_ZA |
| dc.type | Dissertation | en_ZA |