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JSE
THEE
THEE - The Competition Commission - Commission refers a collusion case in the
retail property market
PRESS RELEASE
16 March 2011
Commission refers a collusion case in the retail property market
The Competition Commission referred a case of market allocation in the retail
property market to the Tribunal for adjudication on the 15 March 2011.
This referral follows an investigation into allegation that Erf 179 Bedfordview
(Proprietary) Limited ("Erf 179"), Liberty Group Limited ("Liberty"), Bedford
Square Properties ("Bedford Square"), and Win Twice Properties (Pty) Limited
("Win Twice") colluded to divide markets by allocating customers and territories
through two deeds of restraint.
All of these respondents compete in the retail property market around the
Bedfordview area. Erf 179 owns Village View Shopping Centre, financial service
group Liberty owns Eastgate Shopping Centre, Win Twice and Bedford Square are
subsidiaries of HBW Group (Pty) Ltd both of which own Bedford Square Shopping
Centre.
This case was initiated on 27 August 2009 following information received by the
Competition Commission from a complaint and subsequent leniency applications
from Bedford Square and Win Twice.
The Commission`s investigation established that Bedford Square`s is being
prevented from concluding lease agreement with Woolworths or Mica Hardware
Store for a period of 11 years starting form 04 November 2003. The Win Twice
restraint which commenced from 12 July 2004 prevents Win Twice from concluding
a similar lease agreement for a period of 15 years. This Commission
investigation concluded that these restraints contravenes section 4(1)(b)(ii)
of the Competition Act in that they amount to division of market by allocating
customers or territories.
The Commission has since entered into a settlement agreement with Liberty which
was confirmed by the Tribunal on 04 March 2011. The Commission has asked the
Tribunal to impose an administrative penalty on Erf 179.
The Commission notes that there are pending proceedings in the North Gauteng
High Court and an interim relief application in the Tribunal between Erf 179 and
Bedford Square pertaining to the restraints that are the subject matter of the
Commission`s referral.
ENDS
Further Information:
Oupa Bodibe, Manager: Advocacy & Stakeholder Relations
012 394 3267 / 082 563 6970/ oupaB@compcom.co.za
Molebogeng Taunyane, Coordinator: External Communication
012 394 3289/082 646 8663 / molebogengT@compcom.co.za
Date: 16/03/2011 15:29:06 Produced by the JSE SENS Department.
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