Expert assistance in interdict against software company

Genesis was retained by DLA Piper on behalf of Vexall, a new entrant in the pharmaceutical software value-added services market, with respect to an urgent interim relief application sought against the incumbent, Business Connexion Pty Ltd (“BCX”).

In particular, the application concerned BCX’s refusal to supply its software solution to retail pharmacies unless the pharmacy also buys value-added services from it. The effect of such conduct was to foreclose value-added service providers, and Vexall in particular, from the market.

Genesis’ assistance focused on responding to the economic arguments made by the defendant with respect to market definition, dominance and competitive effects. In particular, Genesis provided critical evidence and arguments to rebut the geographic and product market as defined by BCX in its answering affidavit to show that there was a separate market for value-added services and further that BCX was, in fact, dominant in the sale of software solutions to pharmacies and had been for at least the past 10 years.

The economic analysis conducted by Genesis provided critical inputs in the rebuttal, surpassing the high evidentiary burden necessary to grant an urgent interdict against BCX. This is only the third time in history that such an urgent interdict has been granted by the tribunal.