COMPETITION COMMISSION PUBLISHES DRAFT TERMS OF REFERENCE FOR GROCERY RETAIL SECTOR MARKET INQUIRY

On 12 June 2015, the Competition Commission (“Commission”) published its draft Terms of Reference (“ToR”) for the Grocery Retail Sector Market Inquiry in the Government Gazette. The Commission believes that there are features of the grocery retail sector that may prevent, distort or restrict competition. The Commission has noted that the 4 largest supermarket chains in South Africa account for more than 90% of the market and that since it investigated the issue of long term exclusive leases, it has received complaints about long term exclusive leases between financiers, property developers and supermarket chains presenting a barrier to entry and expansion.