NEWSFLASH FOR WEEK 1 (30 May – 03 June 2022)

 BUSINESS

How not to run an airline (Comair edition)

A group with 40% of the market is giving Mango a run for its money …

Just 24 hours before announcing its decision – on Tuesday night – to “voluntarily suspend” all Kulula and British Airways regional flights from Wednesday (June 1), Comair ran a sale across its own distribution channels which promised up to 30% off flights (it ran a sale via certain travel agents on May 25).

At this point, surely the directors of the group knew that in the absence of funding the airline was about to hit the wall?

COMPETITION

Computicket agrees to pay R11.3m as a second fine for alleged abuse of dominance

The Competition Commission (Commission), Computicket (Pty) Ltd (Computicket) and Shoprite Checkers (Pty) Ltd (Shoprite) have on Wednesday 25 May 2022 reached a settlement agreement in terms of which Computicket agreed to pay a fine of R11 317,000 00 (eleven million, three hundred and seventeen thousand Rand) to settle a second prosecution against it by the Commission for alleged abuse of dominance in contravention of section 8(d)(i) or 8(c) of the Competition Act.

 MEDICAL

Supreme court declares regulations on complementary medicines invalid

In August 2017, the Minister of Health issued updated General Regulations (“the Regulations”) in terms of the Medicines and Related Substances Act 101 of 1965 (“the Act”). This introduced the category of “complementary medicines”, the definition of which included, inter alia, aromatherapy and homeotherapy products and, under the sub-category of health supplements, vitamins, minerals and probiotics. The Regulations stipulated a number of requirements that complementary medicines would have to comply with, including labelling and advertising requirements. Given the wording of the Regulations, producers of complementary medicines were also advised to obtain a licence from the South African Health Products Regulatory Authority (“SAHPRA”) to manufacture such products on the basis that complementary medicines qualify as, and fall within, the definition of a “medicine” as defined in the Act.

TRANSPORTATION

New driving tax proposed for South Africa

The Department of Transport is investigating a new ‘traffic management levy’ which will help with the financing of traffic management resources at both the provincial and national level.

The proposed tax is included in a revised white paper published by the department this past week. The department indicates that the tax could be added to existing vehicle licence fees and/or fuel sales.