Competition Commission of South Africa v Media 24 (Pty) Limited

Media24, a dominant firm in the community newspaper market in Welkom, acquired two competing newspapers, Vista and Forum, thereby obtaining a monopoly. After former employees established a rival newspaper, Gold Net News (GNN), Media24 allegedly drastically reduced advertising prices in Forum and Vista between 2004 and 2009. GNN complained that these prices were below cost and constituted predatory pricing intended to exclude it from the market. GNN eventually exited the market in 2009, and Media24 closed Forum shortly thereafter. The Competition Commission investigated and referred a complaint of predatory pricing to the Competition Tribunal, alleging contraventions of sections 8(d)(iv) and alternatively 8(c) of the Competition Act.

Leave to appeal was granted, but the appeal was dismissed with costs, including the costs of two counsel.

This case is the first Constitutional Court matter dealing directly with predatory pricing under South African competition law. It clarifies the Constitutional Court’s jurisdiction over competition matters raising arguable points of law of general public importance and highlights the tension between economic tests and intent-based evidence in predatory pricing analysis under section 8(c) of the Competition Act.