The Competition Tribunal has rejected most of Shoprite’s proposed amendments to its consent agreement with the Competition Commission.
- Shoprite initially agreed to immediately eliminate exclusivity provisions in non-urban areas.
- Pick n Pay only agreed to stop enforcing exclusivity provisions against small, HDP-controlled supermarkets.
- Shoprite wanted to incorporate exclusivity provisions for existing lease renewals except for SMMEs, specialty and limited-line stores and HDP supermarkets, like Pick n Pay.
- Shoprite argued the differences created market distortions between itself and Pick n Pay.
- Eliminating exclusivity in non-urban areas impacts the most vulnerable consumers.
- Allowing Shoprite to maintain exclusivity for existing lease renewals would not significantly distort competition.
- The tribunal has granted Shoprite an extra two years, until end 2026, to phase out exclusivity provisions, aligned with Pick n Pay’s deadline.