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

Regulations

COVID-19 Block Exemption for the Retail Property Sector 2020

3. Category of agreements or practices exempted
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The Minister hereby exempts the following category of agreement or practice amongst and between designated retail tenants (as set out in Annexure A) and retail property landlords from the application of sections 4 and 5 of the Act, if undertaken at the request of, and in coordination with the Department of Trade, Industry and Competition, for the sole purpose of responding to the COVID-19 pandemic national disaster and which exclude communication and agreements in respect of prices unless specifically authorised by the Department of Trade, Industry and Competition:

 

3.1. Agreements or practices amongst and between designated retail tenants and retail property landlords with the sole purpose of ensuring the survival of tenants of retail properties during the COVID-19 national disaster, which are limited to agreements or practices in respect of:
3.1.1. Payment holidays and/or rental discounts for tenants.
3.1.2.Limitations on the eviction of tenants.
3.1.3. The suspension or adjustment to lease agreement clauses that restrict the designated retail tenants from undertaking reasonable measures required to protect viability during the national disaster.

 

3.2. To qualify for an exemption, such agreements must extend to all South African retail tenants in the designated retail lines, including small, independent retailers, unless otherwise authorised by the Minister or the Competition Commission.