Anti-trust law practitioner talks exclusivity clauses!

Long-term lease agreements are a common feature of the grocery retail sector and often contain an ‘exclusivity clause’ that grants the tenant (typically a grocery retailer) the exclusive right to operate within a particular shopping centre, to the exclusion of its competitors.

Following the conclusion of its Grocery Retail Sector Market Inquiry, the Competition Commission published a final report, in late 2019, wherein it concluded that long-term lease agreements containing exclusivity clauses are anti-competitive and called for the use of such agreements to be abandoned.

The Competition Commission's report has not yet been confirmed by the Competition Tribunal, however some major retailers have already agreed to no longer enforce these clauses. Ofentse and Michelle sit down to discuss the legal implications of this report and the actions that have been taken so far. 

Read the full November 2020 Commercial LeasePack Update here

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