Alvern Cables to pay R4.7m penalty for price fixing, dividing markets
Power cable supply company Alvern Cables has admitted that it engaged in price fixing and market division tendering from November 2001 to November 2012, the Competition Tribunal said in a statement on Friday.
The tribunal has confirmed an administrative penalty of R4.7-million, which is 5% of Alvern’s turnover for 2010.
The cables affected were mainly building wire for both residential and commercial use.
The Competition Commission first lodged a complaint with the tribunal in March 2010 and the complaint was updated in May that year to include additional companies in the power cable supply market.
In its complaint, the commission said the investigation had revealed that South Ocean Electric Wire Company (SOEW), Alvern, Tulisa Cables and Aberdare Cables had allegedly agreed to directly or indirectly fix the selling price of power cables to wholesale distributors and original-equipment manufacturers, and Alvern and Aberdare had agreed to divide markets by allocating these customers in terms of the supply of power cables.
The commission also investigated conduct in relation to the members of the Association of Electric Cable Manufacturers and found that the power cable manufacturers had fixed the selling prices of power cables through indices used in price adjustment formulas by its members.
Alvern has admitted it contravened the Competition Act in regard to these complaints.
In June, the tribunal confirmed an administrative penalty of R13.36-million against SOEW.
Aberdare Cables has been granted conditional leniency.
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