The Competition Tribunal has confirmed a R40-million settlement agreement with wire and steel manufacturer Cape Gate, following the company’s admission of price fixing, dividing markets and collusive tendering in respect of lightly galvanised wire, nails, wire and various wire products.
The Competition Commission said during a tribunal hearing, on Wednesday, that it had taken into consideration Cape Gate’s assistance through litigation “protracted by numerous challenges, in relation to this complaint, which have taken the parties through the courts, including the Supreme Court of Appeal”, when determining the penalty.
Cape Gate has provided witness testimony and documentary evidence after admitting to its involvement in the alleged conduct soon after the referral in 2009 but disputed the quantum of the penalty.
On September 2009, the commission concluded its investigation into alleged price fixing against several parties, including Cape Gate, and referred its findings to the tribunal. It found that the respondents had engaged in directly or indirectly fixing prices and in collusive tendering.