Alberton-based cable manufacturing company South Ocean Electric Wire Company (SOEW) has been fined R13.36-million by the Competition Tribunal, after admitting to having engaged in price fixing, market division and collusive tendering between November 2003 and November 2012.
The fine comprises a percentage of SOEW’s turnover for the financial year ended February 2010.
The Competition Commission referred the case to the tribunal in March 2010 and the complaint was updated twice to include additional companies alleged to have participated in anticompetitive practices in the power cable supply market.
In its complaint, the commission said an investigation revealed that companies in the wire cable supply section had come to an agreement, separate to the contraventions by companies through the Association of Electric Cable Manufactures.
It found that Alvern Cables, Tulisa Cable, Aberdare Cable and SOEW had fixed the selling price of power cables to wholesalers, distributors and original-equipment manufacturers between 2001 and 2010.
SOEW, together with other power cable manufacturers, was also found to have contravened the Competition Act through decisions by the Association of Electric Cable Manufactures to fix the selling price of power cables by using a price adjustment formula which it circulated to members monthly.