The use of long-term exclusive lease agreements by supermarkets in South Africa has been quite controversial over the last few years. Unsurprisingly, the impact of long-term exclusive lease agreements on local competition was one of the six objectives to be investigated by the Grocery Retail Market Inquiry (“GRMI”) which was established on 30 October 2015.
In the final report of the GRMI, which was published on 17 December 2019, it was recommended that the Competition Commission (“Commission”) must seek to secure voluntary compliance by the national supermarket chains of the recommendations made. These recommendations included undertakings by supermarkets not to enforce exclusive provisions in certain instances, that new lease agreements may not contain exclusive provisions and that exclusive lease agreements must be phased out over a period of time.
Continue Reading Reflecting on the phasing out of long-term exclusive lease provisions in South Africa