Industry collaboration can solve a genuine problem: common infrastructure, localisation, sustainability, technical standards or a shared supplier need. The danger begins when a legitimate project becomes a channel for information or influence that should remain independent.

The safest starting point is not “competitors may never collaborate”. It is: define the lawful objective narrowly, design the structure around that objective, and keep every participant’s competitive decisions separate.

The project should have a clear perimeter

A written mandate should identify what the group may discuss and what it may not. The agenda should exclude current or future prices, customer allocation, output, individual costs, margins, sales forecasts and competitively sensitive strategy unless a lawful and carefully controlled basis exists.

Where information is necessary, use the least sensitive form that can still achieve the objective. Historical, aggregated and independently managed information is generally less risky than current, disaggregated data exchanged directly between rivals.

Independence must be real, not ceremonial

Each company should decide independently whether to participate, which supplier to appoint, what volume to commit and what terms it is willing to accept. A trade association can facilitate process and governance, but it should not become the mechanism through which members align their commercial conduct.

For shared procurement or infrastructure, a clean structure may involve a framework establishing common technical and governance terms, followed by separate contracts between each participant and the provider. Liability should be several rather than casually pooled, and confidential submissions should remain bilateral.

Good minutes are a control, not a formality

The chair should stop inappropriate discussion when it occurs. Minutes should record the scope, decisions, recusals and reminders concerning competition-law boundaries. Attendees should know whom to call when the conversation moves outside the mandate.

Legal context

Information exchange between competitors

The Competition Act 89 of 1998 regulates restrictive practices and other competition concerns. The Competition Commission has published guidance on the exchange of competitively sensitive information and on certain collaboration initiatives. Guidance does not replace matter-specific advice, but it is an important design reference.

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General information only. It is not legal advice and should not be relied on without considering the facts and applicable law.