Brick manufacturer and supplier Corobrik, together with five other brick makers, has been charged for alleged price-fixing and division of markets by the Competition Commission.
This follows an investigation launched by the commission in April against Corobrik, Era Bricks, Eston, Brickand Tile, De Hoop Brickfields, Clay Industry and Kopano Brickworks for contravening the Competition Act by allegedly engaging in price-fixing and the division of markets in the manufacture and supply of bricks, pavers and blocks of clay and concrete.
Corobrik is alleged to have entered into separate bilateral agreements with each of the above companies in terms of which they agreed to divide the market by allocating specific products and customers.
In addition, Corobrik and Era Bricks allegedly agreed to fix the prices at which they sold bricks, pavers and blocks.
Corobrik and Era Bricks are alleged to have concluded a memorandum of agreement in terms of which they agreed that Era Bricks would not supply its products directly to customers in competition with Corobrik, but would instead sell directly to Corobrik which would then sell to customers in the open market.
They also allegedly agreed that Era Bricks would not manufacture or sell any bricks other than the types it was manufacturing and selling to Corobrik. In addition, it would not manufacture or sell any competitive product capable of being used in the brick industry in substitution for bricks.
Era Bricks also allegedly agreed not to sell excess products at prices that are lower than those charged by Corobrik.
Corobrik is further alleged to have concluded separate bilateral distributorship agreement with each of Eston Brick, Clay Industry, De Hoop and Kopano wherein each of Eston Brick, Clay Industry, De Hoop and Kopano agreed with Corobrik that they would not supply their respective products directly to customers in competition with Corobrik.
Instead, they would each supply their respective products to Corobrik, which would then sell directly to customers.