Tribunal again extends Depansum’s interim relief against Visa
The following Media Release serves as an explanatory note to assist the media in reporting on this case and is not binding on the Competition Tribunal or any member of the Tribunal
The Competition Tribunal (“Tribunal”) has, for the third time, extended the interim relief granted to Depansum Pty (Ltd) (“Depansum”) against Visa Inc. and Visa Sub-Saharan Africa Pty (Ltd) (collectively, “Visa”) in its order of 19 February 2024.
The Tribunal has extended the interim relief until the earliest of the following: the conclusion of the Tribunal hearing into the prohibited practices alleged by Depansum; the outcome of Visa’s appeal against the granting of the interim relief, pending before the Competition Appeal Court, if it is successful; or six months from the date of this order.
The allegations made by Depansum against Visa are the subject of an ongoing investigation by the Competition Commission.
Context
Depansum provides e-commerce payment processing solutions in South Africa for merchants based offshore. It alleges that Visa established rules that are treated as a binding contract between Visa and its members (including banks), and that Visa uses these rules to prohibit banks (in this case, Nedbank) from using Depansum’s payment system. Depansum alleges that this conduct constitutes an abuse of dominance and contravenes the Competition Act.
Visa has disputed the allegations and opposed Depansum’s interim relief application. Among others, it alleged Depansum’s local collecting agent activities (for foreign merchants) in South Africa contravene exchange control laws. Visa said it was not prepared to permit its payment network to be associated with unlawful conduct. In addition, it argued that Depansum failed to demonstrate that Visa’s enforcement of its rules was anti-competitive or had anti-competitive effects.
Following a hearing, the Tribunal granted Depansum interim relief after finding that, among others: Visa’s conduct prima facie seeks to induce Nedbank not to deal with Depansum; there prima facie is consumer harm in this case; and the balance of convenience favours Depansum. In addition, the Tribunal concluded that it was not appropriate for it to attempt to determine the disputed exchange control issues between the parties.
The interim relief order was first granted on 19 February 2024 and in two subsequent and separate applications, extended on 16 August 2024 and 13 February 2025, respectively, for further six month periods. The applications for extension were unopposed. The Tribunal’s interim relief order, issued in February 2024, and reasons can be accessed on the Tribunal’s website: https://www.comptrib.co.za/case-detail/20537
Issued by:
Gillian de Gouveia, Communications Manager
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
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