The long-running legal battle between the South African Post Office (Sapo), the Independent Communications Authority of South Africa (Icasa) and the courier industry is reaching a critical turning point, with court dates expected to be set soon.
At the centre of the dispute is whether Sapo should hold exclusive rights to deliver packages weighing 1kg or less – a regulation that many in the logistics sector say is outdated and anti-competitive.
While the case initially saw Icasa take on PostNet and the South African Express Parcel Association (Saepa) in 2018, major e-commerce players like Takealot have since joined the ongoing fight.
Sapo launched court action against PostNet and Saepa, seeking to enforce its monopoly over the delivery of small parcels
According to Garry Marshall, CEO of Saepa, the dispute has dragged on for more than six years, with no resolution in sight.
“There’s no shortcut here. We wanted the courts to decide whether parcels under 1kg should be open to the whole industry.”
The dispute is rooted in the Postal Services Act, which gives Sapo exclusive rights to deliver items up to and including 1kg. In 2019, Icasa ruled in Sapo’s favour, ordering private courier services to stop delivering these smaller parcels by March 2020.
This decision, however, was put on hold after Saepa and PostNet obtained a High Court interdict preventing Sapo from enforcing the ruling - a move that has kept the status quo in place, for now.
- Read the full article in our Freight Features edition on “Courier, Express and Parcel” cargo.
