Competition Tribunal comes down hard on Computicket

Competition Tribunal comes down hard on Computicket

Computicket on Monday has been ordered to pay a fine of R20 million by the Competition Tribunal for abuse of market dominance between 2005 and 2010. 


Competition Tribunal comes down hard on Computicket
computicket

The tribunal says this follows Computicket’s use of long-term exclusive agreements to exclude any new entrants into the ticket distribution market.


 


Spokesperson Sipho Ngwenya says the tribunal found that Computicket induced its customers not to deal with competitors.


 


"We have maintained that their [Computicket] behaviour was anti-competitive it was exclusive they were forcing their clients to only sign exclusive contracts, and that had an effect particular to new entrants.


Also Read : LISTEN: Mokonyane ‘offered Bosasa protection’

https://www.jacarandafm.com/news/news/listen-mokonyane-offered-bosasa-protection/


"They were basically dominating the market meaning, therefore, they was abusing their dominance.”


 


The tribunal also says Computicket’s exclusivity contracts increased dramatically after it collaborated with Shoprite in 2005.


 


"In terms of the Competition Act, there are rules that must be followed in terms of competition. 


 


"You, as a dominant player like Computicket, there are things you should not do one of those things is to induce your clients to work with you only at the exclusion of others.


 


"This is what the law says and they broke the law,” says Ngwenya. 


In the Competition Tribunal statement it said Computicket denied that its contracts had an exclusionary effect, instead, it argued that customers preferred to use its services and that exclusive contracts were also meant to mitigate against the reputational risk the statement read.

Show's Stories