Woolworths exclusivity agreements under scrutiny as DA calls for Competition Act reform

THE Democratic Alliance (DA), which is a part of the Government of National Unity, is considering amending the Competition Act to address anti-competitive exclusivity agreements between retailers and their suppliers.

- EDWARD WEST

The DA wants the Competition Commission to investigate exclusivity agreements between retailers and landlords.

(PHOTO: COMPETITION COMMISSION)

The last time the Competition Act was changed was this month, when an amendment to Rule 39 of the Competition Act came into force, allowing the Competition Commission to compel firms to comply with merger conditions through Tribunal applications.

Large retailers or anchor tenants have previously come under fire for exclusivity agreements between them and shopping mall owners.

For instance, a Competition Commission inquiry in 2019 found evidence that these agreements excluded small and large retailers from competing in shopping centres, and the justifications for the leases were often questionable. These agreements were considered restrictive vertical practices in competition law, although the Competition Act has not yet been changed on this matter.