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Saa Ii: Abuse Of Dominance In The South African Skies

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  • Giulio Federico

Abstract

This article reviews an abuse of dominance decision against the incumbent domestic airline in South Africa (SAA) taken in 2010 and upheld on appeal in 2011. This case placed significant emphasis on the economic impact of the abusive conduct, and it represents a clear example of the adoption of an effects-based approach to assess exclusionary behavior by a dominant firm. As this article sets out, given the features of SAA's conduct and of the relevant market context, it is also possible to identify a coherent economic framework that can explain why SAA's rivals could not profitably match its incentive schemes and were therefore foreclosed. The conceptual issues raised by the SAA case are similar to the ones at stake in the landmark judgments on British Airways. The lessons from this case are therefore relevant to the ongoing antitrust debate on loyalty discounts.

Suggested Citation

  • Giulio Federico, 2013. "Saa Ii: Abuse Of Dominance In The South African Skies," Journal of Competition Law and Economics, Oxford University Press, vol. 9(3), pages 709-737.
    • Handle: RePEc:oup:jcomle:v:9:y:2013:i:3:p:709-737.
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    File URL: http://hdl.handle.net/10.1093/joclec/nht010
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    Citations

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    Cited by:

    1. Liberty Mncube & Giulio Federico & Massimo Motta, 2022. "The Assessment of Exclusive Contracts: The Competition Case Against Computicket in South Africa," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(3), pages 403-429, May.
    2. Jacques Charlier, 2020. "South Africa’s contemporary airport geography, between past market dynamics and an uncertain future [La géographie aéroportuaire sud-africaine contemporaine, entre la dynamique récente du marché et," Post-Print hal-03325896, HAL.

    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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