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Competition Act, 1998 (Act No. 89 of 1998)

Regulations

Block Exemption Regulations for Small, Micro and Medium-Sized Businesses, 2024

9. Categories of agreements or practices exempted

 

9. Subject to regulation 10 and 11, the Minister hereby exempts the following categories of agreements or practices among SMMEs from the application of sections 4(1) and 5(1) of the Act:

 

9.1. Research and development (R&D) agreements which include outsourcing R&D to third parties or cooperation agreements to conduct R&D.

 

9.2. Production agreements for production of a good or the provision of a service, or toll manufacturing by one firm for another (standalone or on a reciprocal basis) which do not result in the removal of a competitor from the market.

 

9.3. Joint purchasing agreements which may include collective purchasing by a subset of firms in a market.

 

9.4. Joint selling of goods or services to and through intermediaries or other business customers by a subset of firms in a market.

 

9.5. Commercialisation agreements which include co-operation between firms relating to the selling, distribution or promotion of their products. Agreements may cover all commercial aspects or may be limited to one specific function, such as distribution, after-sales service, or advertising.

 

9.6. Standardisation agreements which include setting the technical or quality requirements with which current or future products, production processes, services or methods may comply. These agreements may cover technical specifications, environmental performance, grades or sizes of products, or the terms of approval by a regulatory body.

 

9.7. Collective negotiations with large buyers or suppliers on the terms and conditions for purchasing or supply.