Commission probing malls and big supermarket chains

The Competition Commission has confirmed that it is investigating anti-competitive behavior and collusion in malls across South Africa.

Itumeleng Lesofe, Competition Commission spokesman says they are conducting an inquiry into the South African grocery retail sector. The inquiry was prompted by a number of complaints received by the Commission against shopping malls developers and supermarkets chains.

The main concern is the exclusive lease agreements that are concluded between the national supermarket chains and mall developers.

Itumeleng Lesofe, spokesperson of the Commission

Lesofe says the exclusive lease allows the supermarkets to be anchor tenants of the mall and be given rights to supply groceries at specific malls for long periods.

These agreements mean there will be no competition between supermarkets at specific malls and these affect small businesses as they wont be able to operate in certain malls to supply groceries in competition with some of these big supermarkets.

In terms of competition law this often creates problems because where there is no competition, consumers suffer.

Itumeleng Lesofe, spokesperson of the Commission

If there is no competition, firms don't often see the need to be efficient and innovative and this also has a negative impact on prices paid by consumers.

Itumeleng Lesofe, spokesperson of the Commission

Listen to the full conversation below:

Read More
Team of PE scientists create biodegradable shopping bags

Team of PE scientists create biodegradable shopping bags

The bag is made with maize and sugar cane and is completely biodegradable in mud‚ soil‚ water and compost.

What justifies a R1 million price tag for a parking bay?

What justifies a R1 million price tag for a parking bay?

CEO at Advance On Point Solutions looks at the criteria used when pricing the exorbitant parking bays in the Atlantic Seaboard.

Competition Commission responds to claims of unethical conduct by banks

Competition Commission responds to claims of unethical conduct by banks

CEO of Travelstart, Stephan Ekbergh, claims that banks are poaching their clients by looking at customer data.

The rise of a barista - from humble beginnings to coffee shop owner

The rise of a barista - from humble beginnings to coffee shop owner

Gugulethu Coffee owner, Bongani Rasmeni shares his journey with CapeTalk's Kieno Kammies and says his coffee is the best in town.

South Africans working beyond retirement age

South Africans working beyond retirement age

Due to an increased life expectancy more and more people find it hard to make ends meet after retirement so they keep working.

Why are executives paid so much?

Why are executives paid so much?

BBC recently decided to publish salaries of its highest-paid stars. Dr Mark Bussin discusses factors that determine these figures.

Popular articles
Home Affairs to follow up on special dispensation permit for Zimbabweans in SA

Home Affairs to follow up on special dispensation permit for Zimbabweans in SA

Home Affairs Minister Hlengiwe Mkhize says her department will respond to all Zimbabweans under special dispensation.

No escaping the tax man even if you work outside SA

No escaping the tax man even if you work outside SA

Government is intending to change the way foreign income is taxed by introducing taxes to a large South African diaspora.

Earn peanuts? How to best invest very small amounts...

Earn peanuts? How to best invest very small amounts...

Got a spare R200 or R300 a month? Here’s how to make that money work hard and grow…

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Michiel le Roux speaks about the fascinating story behind the little bank that has the Big 4 shaking in their boots.

5 most important years in anyone’s life (when it comes to investing)

5 most important years in anyone’s life (when it comes to investing)

How old are you? Financial advisor Warren Ingram discusses the five most important ages in anyone’s investment career.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?