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In this matter, Nu Africa Duty Free Shops (Pty) Ltd (“Nu Africa”) accuses Distell Ltd (“Distell”) of abuse of dominance. Abuse of dominance occurs when a dominant firm exercises its market power by engaging in exploitative or exclusionary conduct.
 
This matter arose after Distell stopped supplying liquor products to Nu Africa. Distell alleged that products supplied to Nu Africa on a duty-free basis had made its way into the South African duty-paid market, a form of illicit alcohol trading known as 'tax leakage'. Nu Africa denied Distell’s claims and is now asking the Tribunal for an order declaring that Distell’s conduct amounts to an abuse of dominance, in contravention of the Competition Act.
 
Nu Africa is a supplier of duty-free liquor, among other products, to diplomats and to marine travellers through their off-licence retail outlets in Pretoria and Cape Town. It also exports alcohol to the African market. Distell, in turn, manufactures liquor products and has supplied duty-free liquor to Nu Africa, in accordance with terms and conditions in a supply agreement.
 
The Competition Commission, which investigates such matters before deciding whether or not to refer abuse of dominance cases to the Tribunal for prosecution, decided not to refer this matter. Nu Africa subsequently self-referred the matter to the Tribunal. 
 
The Tribunal expects to hear submissions from Nu Africa and Distell as well as oral evidence from their factual and expert witnesses.
 

Issued by Gillian de Gouveia, Communications Officer on behalf of the Competition Tribunal of South Africa