JOHANNESBURG, June 21 (Xinhua) -- As South Africa continues with crackdown on anti-competitive behavior, Competition Tribunal on Wednesday slapped a fine of about one million U.S. dollars on the South Ocean Electric Wire Company (SOEW) for price fixing, market division and collusive tendering.
The company agreed that in November 2003 and November 2012 they took part in price fixing, market division and collusive tendering. The Competition Commission first lodged a complaint with the Tribunal in March 2010.
The investigations by the Commission revealed that companies in the wire cable supply section had come to an agreement to divide the markets and fix the prices.
Chantelle Benjamin, spokesperson of the Competition Tribunal said, "The Competition Tribunal has confirmed the administrative penalty of 10 percent of SOEW's annual turnover for the financial year ending February 2010. SOEW has admitted that it agreed, alternatively engaged in a concerted practice, with Abedare Cables to divide the market between 2001 and 2007."
The Commission found that Alvern Cables, Tulisa Cable, Aberdare Cable and SOEW had fixed the selling price of power cables to wholesalers, distributors and original equipment manufacturers (OEMS) between 2001 and 2010.
SOEW and other power cable manufacturers through decisions by the Association of Electric Cable Manufactures fixed the selling price of power cables by using a price adjustment formula which it circulated to members monthly. This was in contravention of the Competition Act.
Price fixing is common in South Africa with the Commission taking a hard stance on those taking part in uncompetitive behavior.
