https://www.engineeringnews.co.za

Foodcorp asks for review of price-fixing charges against it

14th December 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

The Competition Tribunal has given the Competition Commission until January 31, to provide clarity on some of the charges bought against one of four companies in the pelagic fish sector.

The commission, in its complaint, alleged that Pioneer Fishing and local food company Foodcorp had entered into at least three agreements between 2002 and 2009, during which they fixed the price of pelagic fish to retailers and wholesalers, through the exchange of sensitive information.

Pioneer is also alleged to have repeatedly put pressure on Foodcorp to increase its prices, besides other things.

Foodcorp asked the tribunal to order the commission to amend its complaint referral to the tribunal, noting that the present referral was “vague and embarrassing”. The tribunal agreed that certain parts of the complaint required clarification.

The tribunal asked for clarity on a number of matters, including what agreements or concerted practices had taken place, what prices were fixed and for what product. It is also not clear when Premier exchanged its price list with Foodcorp and whether the exchange was bilateral.

Foodcorp, at its hearing, said the allegations against the company for alleged price fixing with Pioneer were not detailed enough to answer the case against it.

The complaint is also not clear on Foodcorp’s response to Pioneer’s alleged pressure on it to increase its prices. Foodcorp will have 20 days to respond once the commission has submitted the amended complaint.

The three other companies investigated by the commission, have settled.

Saldanha Foods admitted it contravened the Competition Act when it agreed, as a member of the South African Pelagic Fish Processors Association, to fix prices paid to vessel owners or operators, skippers and crew for the service of catching pelagic fish.

This took place between the mid-1990s and 2010. Saldanha Foods agreed, among other things, to pay a penalty of R4-million for its involvement.

Oceana Brands and Pioneer have also paid penalties of R34.7-million and R2.1-million, respectively.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.077 0.131s - 137pq - 2rq
Subscribe Now