South Africa Competition Act 89 of 1998 4-2: Presumption of cartel agreement where firms share directors, shareholders or significant interests

What does 4-2 require?

Where one firm owns a significant interest in another, or the firms share a director or a substantial shareholder, and some combination of them carries out price fixing, market division or collusive tendering, an agreement to do so is presumed to exist (section 4(2)). The firm, director or shareholder can rebut the presumption only by establishing a reasonable basis to conclude that the conduct was a normal commercial response to market conditions (section 4(3)). Director here covers company directors, close corporation members, trustees and equivalent positions.