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SABMiller cleared again in South Africa competition case

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A decision to clear SABMiller over claims that it engaged in anti-competitive behaviour in South Africa has been upheld.

SABMiller has been cleared again after an appeal by South Africas Competition Commission

SABMiller has been cleared again after an appeal by South Africa's Competition Commission

Last March, the group's South African Breweries (SAB) unit was originally found not guilty by the country's Competition Tribunal over accusations it broke competition laws through distribution and pricing activities between 2004 and 2007. South Africa's Competition Commission appealed the original decision, but in a ruling this week the appeal was dismissed.

The original case came about after wholesaler Big Daddy's lodged a complaint to the commission in 2007 over SAB's distribution system.

Big Daddy's claimed that SAB charged it the same price as the brewer charged to retailers, thereby preventing the wholesaler from earning a fair margin on its sales to retail.

In this week's judgement, the Competition Appeal Court of South Africa said the commission had failed to prove that the alleged price discrimination would have the likely effect of substantially lessening competition.

When contacted by just-drinks, a SABMiller spokesperson said the company is not commenting on the failed appeal.


Sectors: Beer & cider

Companies: SABMiller

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