JOHANNESBURG (miningweekly.com) – The Competition Tribunal this week approved a consent agreement with Fermel for colluding and dividing up markets for branded gear pumps.
The Competition Commission followed up a February complaint outlining that Fermel and another company had entered into an agreement to divide markets by allocating customers with regard to the supply of Cassapa branded gear pumps from 1993 to 2013.
The commission said Fermel customers in the market for post warranty repair and maintenance services who wanted that particular brand of gear pump did not have the opportunity to buy it from the other company, owing to an agreement between the two companies.
“Fermel has admitted to contravening the Competition Act and will pay an administrative penalty of R104 010, as well as providing the tribunal with a copy of the competition law compliance programme within 60 days of confirmation of the consent agreement,” the tribunal said in a statement.
The matter was heard on July 11, but was delayed while the settlement was amended in respect of the compliance programme. The amendment has since been received and considered by the tribunal.