South Africa Competition Act 89 of 1998 4-1a: No horizontal agreements or concerted practices that substantially lessen competition

What does 4-1a require?

Competitors (parties in a horizontal relationship) must not enter agreements, engage in concerted practices or, through an association, take decisions that substantially weaken or prevent competition in a market, unless one of the parties can prove that the arrangement's technological or efficiency benefits, or other gains for competition, outweigh that effect (section 4(1)(a)). Trade association rules, information exchanges, joint ventures and standard-setting between competitors are assessed under this rule, and the burden of justifying a restriction sits with the firms. Agreements within a single economic entity (a company and its wholly owned subsidiaries) are outside the rule (section 4(5)).