Competition and Regulatory Team of the Year: Bowman Gilfillan Africa Group – African Legal Awards 2015
Bowmans team triumphs for its work defending SAB in long-running competition case before Competition Appeal Court
November 25, 2015 at 07:59 AM
2 minute read
Finalists
Baker & McKenzie
Bowman Gilfillan Africa Group
Webber Wentzel
Winner: Bowman Gilfillan Africa Group
Highly commended: Baker & McKenzie
More than ten years since an initial complaint was lodged with the Competition Commission, this February finally saw the end of a long-running case against Bowman Gilfillan Africa Group client South African Breweries (SAB), with allegations of abuse of dominance against the brewer dropped.
The case centred on a complaint made by Big Daddy's Group against SAB and its distributors that the price of SAB's beer on the wholesale market was the same as its pricing to retailers, making it impossible for wholesalers to turn a profit.
Specific appointed SAB distributors are eligible for a distribution fee, however independent distributors such as the complainant are not eligible for this, or a discount. The Competition Commission argued that these distribution agreements lessened intra-brand competition for SAB products and prevented rival distributors from succeeding.
However the Competition Appeal Court ultimately clarified that such agreements did not amount to price fixing, nor were automatically illegal and that an open distribution market was likely to lead to an overall hike in beer prices for consumers.
"Great work," said one judge, "counsel fought tooth and nail until the end ensuring the law was correctly applied".
Pictured from left to right: awards judge Gail Evans, group legal advisor and company secretary, Steinmuller Africa, and Iona Dhladhla, partner, Bowman Gilfillan Africa Group.
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