🔍💼 CompetitionTribunal ruling on Eskom and EconOil case – find out the verdict and implications. More on TheCitizenBusiness ⬇️
The Competition Tribunal has ruled that deregistering a supplier is not anti-competitive, after Eskom deregistered Econ Oil & Energy as a supplier and banned it from being a supplier for ten years.
Econ Oil supplied fuel oil to Eskom from 2003. Eskom investigated allegations of improper and unethical conduct against Econ Oil in 2021, and subsequently terminated the supply agreement. The tribunal said this section of the Act prohibits a dominant firm from engaging in an exclusionary act “if the anti-competitive effect of that act outweighs its technological, efficiency or other pro-competitive gain”. An exclusionary act is as an act that impedes or prevents a firm from entering into, participating in or expanding within a market.
“It is the tribunal’s view that the Mlonzi and Econ Oil did not demonstrate any anti-competitive effects from Eskom’s exclusion of Econ Oil as a supplier and the tribunal cannot find that Eskom was not justified in deregistering Econ Oil as a supplier for its alleged involvement in improper and unethical business practices”.
Regarding the need to prevent serious or irreparable harm, the tribunal believed it is unnecessary to reach definitive findings given its conclusion that no prima facie evidence of a prohibited practice was established.
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