ConCourt dismisses appeal by participants in bicycle industry cartel
The Constitutional Court has dismissed Omnico’s and Coolheat Agencies’ leave to appeal the ruling finding them guilty of price fixing in a bicycle cartel.
The Competition Commission on Thursday welcomed the ruling, noting that the parties were appealing the ruling that if a firm participates in a collusive meeting, without publicly distancing itself from what was discussed, the company had given other participants in the meeting reason to believe that it agreed to and would comply with what was decided at the meeting.
In 2008, some 20 bicycle retailers and wholesalers contravened the Competition Act by agreeing to fix prices during a meeting held in September of that year.
The commission initiated a complaint against all 20 parties and subsequently concluded settlement agreements with 11 bicycle retailers and six wholesalers. Among others, the retailers and wholesalers admitted to having contravened the Act.
However, Omnico and Coolheat did not conclude any settlement with the commission and pleaded not guilty. They argued at the Competition Tribunal that they did not “actively participate” in the discussions and were, therefore, not liable.
Administrative fines of R4.6-million and R4.2-million respectively had been imposed on the companies.
The two companies subsequently took the decision on appeal to the Competition Appeal Court (CAC). The appeal was dismissed and the CAC found that Omnico and Coolheat engaged in price fixing.
The decision of the Constitutional Court concludes the matter.
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