Competition Act, 1998 (Act No. 89 of 1998)

Regulations

Block Exemption for the Security of Supply of Essential Goods, 2021

3. Category of agreements or practices exempted
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The Minister hereby exempts the following categories of agreements or practices by firms in the value chain (i.e. production, distribution and retail) for essential goods from the application of sections 4 and 5 of the Act for the sole purpose of responding to actual or anticipated shortages of essential goods in general or in particular areas of the country, and where the essential goods suppliers have notified the Department of Trade, Industry and Competition (“DTIC”) and the Competition Commission (“Commission”) of actual or anticipated shortages and the need to engage in such practices:

 

Exempted communication

 

3.1. Communicating with each other in relation to the loss of stock or capacity in general and in particular areas of the country in order to determine the extent and location of likely shortages of essential goods;

 

3.2. Communicate with each other in relation to the availability of stocks and capacity in general and in particular areas of the country in order to determine the overall capacity for supply and the ability of different firms to supply different areas, as well as the timing thereof; and

 

3.3. Communicate with each other as to the extent of demand for essential goods in different parts of the country in order to determine the extent of shortage and an equitable distribution of available supply across the country to consumers and customers, including small businesses.

 

Exempted coordination

 

3.4. Coordinating in relation to the allocation of inputs across producers of essential goods in order to reduce anticipated or actual shortages in general or in particular areas, and to ensure an equitable distribution of essential goods across the country, including the transfer of inputs between producers of essential goods;

 

3.5. Coordination in relation to the distribution of essential goods to different geographic areas in order to ensure an equitable distribution of essential goods across the country to consumers, and especially poorer households, and customers, including small businesses; and

 

3.6. Coordination in relation to measures that may expand stocks or capacity in order to relieve anticipated shortages of essential goods in general or in particular areas.