The Competition Tribunal of South Africa has ordered Computicket to pay an administrative penalty of R20 million for abusing its dominance in the ticketing industry.
The tribunal found that Computicket leveraged its market position to secure exclusive agreements with its customers and cut out other ticket distribution companies.
It was found that the company contravened the Competition Act for the period from 2005-2010, and will now be required to pay its R20-million penalty within 60 days.
Initially, the tribunal found that it should fine Computicket R21 million, but it reduced the sum as the company has not previously been found in contravention of the act.
This anti-competitive behaviour allowed Computicket to extend exclusive contracts and negotiate better rates with larger customers compared to smaller ones.
Companies which complained about Computicket’s exclusive contracts include Artslink, Strictly, Tickets, Going Places, and Space.