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LML4802
Law of Competition and Trademark
PORTFOLIO MEMO
SEMESTER 1 - 2023
UNIQUE NUMBER: -
Due Date: - 12 June 2023
Includes Footnotes and/or Bibliography
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, QUESTION 1
Uni Pharma (Uni) is a large pharmaceutical retailer that sources its products from
Mega Pharma Manufacturers (Mega), one of the largest pharmaceutical
manufacturers in South Africa with an 80% market share.
When South Africa experienced its first case of COVID 19 pandemic, Uni, Mega and
other pharmaceutical manufacturers and retailers witnessed a vast increase in
demand for facial masks, sanitizers and disinfectants (these products). As a result,
South Africa experienced a shortage of these products. Mega had to increase its
production to meet the demand from pharmacies. At the same time, Uni had to
procure more stock to meet the demand from consumers. To ensure the continued
supply of these products to consumers, Uni unilaterally increased the prices of
these products by 300%. In addition, Uni, with a market share of 40%, approached
other pharmaceutical retailers and thereby agreed to charge the same price for
these products.
Many consumers were disgruntled by the increase, as they could not afford these
products when they are in so much need of them.
1.1 You are the principal investigator of Uni’s conduct. Write a report wherein you
outline in detail the provisions contravened by Uni, grounds of justification if any,
and sanctions that may be imposed by the Competition Commission. (10)
Report on Uni’s Conduct and Potential Sanctions by the Competition Commission
Introduction
Uni, a leading player in the education sector, has been under investigation for engaging
in anti-competitive practices. As the principal investigator for this case, this report outlines
the provisions contravened by Uni, the grounds of justification if any, and the sanctions
that may be imposed by the Competition Commission.
