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Edible fats producer fined R35m for anticompetitive behaviour

21st July 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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The Competition Tribunal has confirmed a consent agreement between edible fats and oils producer Sime Darby Hudson Knight and the Competition Commission, in terms of which Sime Darby agreed to pay a R35-million fine for anticompetitive behavior between 2004 and 2013.

The commission had received a third-party complaint in 2012 alleging that Sime Darby and its competitor, Unilever South Africa, had engaged in collusion in contravention of the Competition Act.

Following an investigation, the commission determined that during the period from 2004 to 2013, the two companies had concluded an agreement to divide markets by allocating markets for specific types of products. The agreement between these two firms meant that Sime Darby could not supply retail outlets with certain products.

In addition to the fine, Sime Darby will also invest R135-million in a new packaging and warehousing facility, ensuring that it has the ability to package small-size edible fats and oils to be supplied to retail customers.

It has further committed to using the services of a black economic-empowerment (BEE) distributor and to assist the BEE firm in becoming a viable business.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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