The Competition Commission has rejected an application for Section 4 exemption by Spring Lights Gas. Spring Lights Gas, a natural gas trader, sought the exemption to continue with the market 2002 allocation arrangement it had entered into with Sasol Gas, which prohibited Sasol from competing for SLG's current and future customers in KwaZulu-Natal.
The application was rejected because SLG had become financially and administratively independent from Sasol, and was able to make inroads into the KwaZulu-Natal market without competition from Sasol. The Competition Commission also pointed to the Gas Act to support its objective of promoting competition in the gas industry.
Source: Engineering News
Related Content: Crackdown on Cartels Highlights the Need for Competition Law Compliance in South Africa (Heather Irvine, Norton Rose)