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The Assessment of Exclusive Contracts: The Competition Case Against Computicket in South Africa

Author

Listed:
  • Liberty Mncube

    (University of Witwatersrand)

  • Giulio Federico

    (European Commission)

  • Massimo Motta

    (ICREA – Universitat Pompeu Fabra)

Abstract

This article reviews an abuse of dominance decision against the main outsourced ticketing firm in South Africa. The decision of the Competition Tribunal in January 2019 was upheld by the Competition Appeal Court in October 2019. The case clearly illustrates an economics approach to evaluating exclusionary conduct. As this article sets out, the market and contractual environment in which Computicket operated corresponded closely to the assumptions of the economic theory of anti-competitive exclusive dealing. These conditions, taken together, imply that Computicket’s exclusive contracts are likely to have led to significant anti-competitive effects in the relevant market.

Suggested Citation

  • Liberty Mncube & Giulio Federico & Massimo Motta, 2022. "The Assessment of Exclusive Contracts: The Competition Case Against Computicket in South Africa," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(3), pages 403-429, May.
    • Handle: RePEc:kap:revind:v:60:y:2022:i:3:d:10.1007_s11151-021-09841-y
    DOI: 10.1007/s11151-021-09841-y
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    References listed on IDEAS

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    1. Chiara Fumagalli & Massimo Motta & Thomas Rønde, 2012. "Exclusive Dealing: Investment Promotion May Facilitate Inefficient Foreclosure," Journal of Industrial Economics, Wiley Blackwell, vol. 60(4), pages 599-608, December.
    2. Giulio Federico, 2013. "Saa Ii: Abuse Of Dominance In The South African Skies," Journal of Competition Law and Economics, Oxford University Press, vol. 9(3), pages 709-737.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    4. Klein, Benjamin, 1988. "Vertical Integration as Organizational Ownership: The Fisher Body-General Motors Relationship Revisited," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 199-213, Spring.
    5. Michael D. Whinston & Ilya R. Segal, 2000. "Naked Exclusion: Comment," American Economic Review, American Economic Association, vol. 90(1), pages 296-309, March.
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