Hearing of Abuse of Dominance Case Against Gabcon

The Competition and Consumer Tribunal today (7th July 2020) heard arguments on more points in limineraised by GABCON in an abuse of dominance case involving the Competition and Consumer Authority and GABCON.

On 6^th June, 2017, the Authority received a complaint from a group of private hauliers who alleged that GABCON had imposed restrictions preventing them from efficiently servicing their customers. The private hauliers complained that GABCON’s behaviour negatively affected their businesses in that it had forcefully taken some of their customers, forced them to share deliveries with it, and coerced their customers to engage it for deliveries. They alleged that if this behaviour by GABCON continued without intervention, they would be forced to exit the market and close shop. 

The Authority then instigated an investigation against GABCON and subsequently referred the case to the Competition Commission on 26^th November 2018. In response to the referral, GABCON raised points in limineon 10^th and 21^st December 2018 respectively, alleging amongst other things that the Authority’s referral was irregular, the proceedings were a nullity (based on numerous reasons put forward).

The Authority naturally opposed the points in limine raised by GABCON, and the Parties appeared before the Competition Commission on 19^th March 2019, for argument. On 28^th May 2019, the Competition Commission handed down its judgement and dismissed all the points in limine that were raised by GABCON. When the matter was now ripe to proceed to the merits of the cases. GABCON yet again, now before the Competition and Consumer Tribunal has made an application to be allowed to file further supplementary affidavits and to raise a defence that they are operating on the basis of a statutory monopoly and cannot be subjected to Competition Regulation as per section 3 (3) (b) of the Competition Act.

Naturally CCA has opposed this application and wants the matter to proceed on to the merits. The application was heard by the Tribunal at the Botswana Bureau of Standards Building Block 8 Industrial Site. Due to Covid-19 health protocols, only the parties were allowed into the hearing room.