A primary objective of the South African Competition Act is to address persistent market concentration and skewed economic ownership profiles. Over recent years, this has become a core focus area for the Competition Commission.

To level the playing field, the Competition Act provides specific, robust statutory protections for Small and Medium-Sized Enterprises (SMEs) and Firms controlled by Historically Disadvantaged Persons (HDPs). These protections are primarily enforced through the Act’s buyer power and price discrimination provisions. They also play a critical role in merger control, where the Commission evaluates public interest grounds and assesses the overall impact of a transaction on smaller market participants.

It is vital to evaluate where your commercial network stands. You must identify whether your customers or suppliers qualify as SMEs or HDP-controlled firms, and whether your own business meets the criteria to claim protection under the Act.

The thresholds used to classify micro, small, and medium enterprises were recently updated. The updated framework across key sectors is detailed below:

Navigating competition compliance requires careful analysis of supply chains, pricing structures, and procurement policies. Our competition law team assists businesses with compliance audits to identify and mitigate buyer power or price discrimination risks, strategic advisory for small businesses and HDP firms looking to enforce their statutory rights, and merger-related advice, including regarding public interest mandates as they apply to SMEs and HDP-controlled firms. Please do not hesitate to contact us for advice.