• Skip to main content
  • Skip to header right navigation
  • Skip to after header navigation
  • Skip to site footer
MyZA

MyZA

News, Directory, Events and Other Stuff

  • Social Media
  • Sport
  • World News
  • Home
  • Submit News
  • Directory
  • Events
  • Stratlec
  • TFSA
  • News
    • APO
    • Today’s Sport News
    • Todays Social Media and Tech Headlines
    • Today’s World News
    • Today’s SA Financial News
  • Contact
You are here: Home / News / There Is No Good Economic Reason for Any Retailer to Tell a Supplier They Can’t Sell Goods Elsewhere

There Is No Good Economic Reason for Any Retailer to Tell a Supplier They Can’t Sell Goods Elsewhere

23 May 2026 by Guest

Statement by Toby Chance MP – DA Spokesperson on Trade, Industry and Competition:

The Democratic Alliance is considering our approach to amend the Competition Act to address anti-competitive exclusivity agreements in retail.

There is no good economic reason that any retailer should tell a supplier they can’t sell goods elsewhere, and there is no reason any supplier should force a retailer to carry only their brand of a certain class of product.

Today news has emerged that a dispute between Woolworths and Grey’s Marine, a supplier of fish, has forced the small business to close down after supplying Woolworths for over 30 years. 230 jobs have been lost and the company has gone out of business.

This issue has also come to the fore after the liquidation of Beyers Chocolates, following a dispute with Woolworths over exclusivity agreements. Beyers, a supplier to Woolworths for 34 years, was forced to close down after Woolworths withdrew its business, claiming Beyers had infringed its exclusivity agreement by supplying products to other retailers.

Beyers had borrowed R200 million to fund a new factory to expand its capacity. When Woolworths pulled out, Beyers could not repay the debt. Liquidation has led to the loss of over 700 jobs.

Beyers contended that exclusivity agreements should be confined to product categories and should not apply to companies with production facilities that also supply non-competitive products to other customers.

Under South African competition law (Section 7 of the Competition Act), if a firm controls 45% or more of a defined market, they are automatically deemed to possess significant market power. The 45% threshold represents an irrefutable presumption of dominance.

Where a dominant firm imposes unfair or discriminatory contract terms on smaller contracting parties, this may constitute an abuse of dominance under Section 8. This is particularly relevant in supply chain relationships where smaller businesses contract with large corporates.

In the Beyers instance, the Competition Commission took the view that because Woolworths only controlled 9% of the groceries market it could not be regarded as dominant. In the DA’s view, the “dominance threshold” of 45% shouldn’t be required to show that an exclusivity agreement is abusive.

Dominance, in the Beyers and Grey’s cases, was established based on the contractual dependence of the supplier on the customer for the majority of its business, built up over many years. Sudden changes to the agreements between Beyers, Grey’s and Woolworths can be argued to represent abuse of dominance which an amended Competition Act must address.

The DA has also learned of a third small business which was forced into liquidation in 2024 under very similar circumstances with Woolworths.

The DA absolutely and unequivocally stands for the economic and market freedoms of all businesses to contract between one another on legal terms they agree – however, after big retailers make small businesses contract for exclusivity, and later seek to renegotiate terms once operational dependence has been established, they are taking advantage of their position and competition law must step in.

Share this:

  • Share on X (Opens in new window) X
  • Share on Facebook (Opens in new window) Facebook
  • Print (Opens in new window) Print
  • Email a link to a friend (Opens in new window) Email
  • Share on LinkedIn (Opens in new window) LinkedIn
  • Share on Tumblr (Opens in new window) Tumblr
  • Share on WhatsApp (Opens in new window) WhatsApp
  • Share on Mastodon (Opens in new window) Mastodon
Category: NewsTag: Letter

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:


Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Fun South African fact

    Dear Editor Fun South African fact: towns like Franschhoek and Stellenbosch are home to world-class wine farms set in stunning, scenic surroundings. Regards Aressa Smith In Response to/From: Luxury Properties Seized in New Lottery Crackdown

    27 January 2026
  • Condolences on the Passing of Lusanda Dumke

    Statement by Leander Kruger MPL – DA Buffalo City Constituency Leader: The Democratic Alliance in Buffalo City Metropolitan Municipality mourns the passing of Springbok Women’s rugby player and Mdantsane trailblazer, Lusanda Dumke, who lost her battle with cancer at the age of 28. South Africa has lost an exceptional athlete, a leader, and a source…

    17 December 2025
  • Rape Kits Delivered, But…

    Statement by Nicholas Gotsell MP – DA NCOP Member on Security & Justice: The DA can confirm that 2 840 rape kits arrived in Cape Town on Monday, following sustained DA oversight and pressure after multiple police stations across the Western Cape were found to be without this critical forensic evidence tool. While this delivery…

    17 December 2025

About Guest

Previous Post:After 8 Years of Failure We Will Make Crime the Agenda
Next Post:South African Writer Ashraf Johaardien Breaks Silence on BASA Departure

Reader Interactions

Comments

  1. Truth

    24 May 2026 at 2:16 am

    Be careful of the man who stays calm and smiles in a crisis for he has already found someone to put the fault on.

    Reply
  2. Twitch

    23 May 2026 at 12:24 pm

    Fun South African Fact: South Africa is home to a variety of landscapes and biomes, including deserts, wetlands, bushveld, grasslands, mountains and subtropical forests.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Copyright © 2026 · MyZA · All Rights Reserved · Powered by Reach Trust