The Competition Tribunal on Wednesday confirmed, as an order, a settlement agreement between power cable supplier Alcon Marepha and the Competition Commission, with Alcon to pay an administrative penalty of R1.37-million.
Alcon admitted to collusive tendering through the submission of cover prices for tenders issued by State-owned power utility Eskom.
Alcon, in agreement with competitors, allocated specific product lines and agreed on the prices to be charged per product line, from 1994 to 2008. Prices were maintained through the provision of cover prices.
Additionally, Alcon admitted to fixing the prices of power cables through the Association of Electric Cable Manufacturers South Africa. Under the auspices of the association, Alcon discussed and agreed to quotation indices with competitiors.
These indices were used to escalate prices when bidding for short- and long-term tenders to supply electric cabling products between 2001 and 2012.
Alcon agreed to further cooperate with the commission in respect of ongoing investigations around the matter.