A critical review of the treatment of dominant firms in competition law : a comparative study
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Authors
Munyai, Phumudzo S.
Issue Date
2016-10
Type
Thesis
Language
en
Keywords
Abuse of dominance , Exclusionary conduct , Unilateral conduct , Dominant firms , Super-dominant , Monopoly , Anti-monopoly , Competition law , Antitrust law , Hostility , Consumer welfare , Consumer harm , Anticompetitive harm , Anticompetitive effects , Causation , Counterfactual , Competition Commission , Competition Tribunal , Competition Appeal Court
Alternative Title
Abstract
In South Africa compliance with competition law has become a major concern for firms that achieve and maintain certain levels of success and growth in the market, as their actions are often a source of complaints and litigation by rivals and competition authorities. With substantial financial penalties often levied against them for a variety of conduct deemed to constitute an abuse of their market position, dominant firms must constantly be aware of the likely impact of their business strategies and actions on both rivals and consumers. What were once thought to be normal and economically sound business practices and decisions, such as cutting prices to attract customers, have now acquired new meanings, with devastating consequences for dominant firms. So, are dominant firms under attack from competition law? In this study I aim to determine this.
I track the historical development of competition law in three jurisdictions: South Africa, America, and the EU, with the aim of identifying traces, if any, of hostility towards dominant firms in the origins of competition law. I further investigate whether the formulation and enforcement of certain aspects of existing abuse of dominance provisions manifest as hostility towards dominant firms. While acknowledging the important role that competition law enforcement plays in promoting competition and enhancing consumer welfare, I conclude that significant unjustified economic and legal prejudice is suffered by dominant firms as a result of the way in which certain abuse of dominance provisions have been formulated and applied. I also offer appropriate recommendations.
Description
Citation
Munyai, Phumudzo S. (2016) A critical review of the treatment of dominant firms in competition law : a comparative study, University of South Africa, Pretoria, <http://hdl.handle.net/10500/21908>