The Competition Commission has received a complaint from the South African Property Owners Association (SAPOA), requesting that it re-look at exclusive clauses in long term lease agreements between retail shopping centres and anchor tenants. The Commission is screening the complaint and will make a determination as to whether to launch a full-scale investigation or not. This complaint follows:
- the supermarket investigation into exclusive lease agreements, which was concluded earlier this year and in which the Commission found insufficient evidence to refer its investigation to the Competition Tribunal (see our January update available here); and
- Pick n Pay's recent efforts to enforce exclusivity clauses to prevent Massmart from offering groceries at the retail level (see our August update available here).