The Competition Tribunal has approved, as an order, a settlement agreement whereby wire and steel manufacturer Cape Gate has agreed to pay a R1.38-million administrative penalty.
The agreement settles the dispute between the Competition Commission and Cape Gate in terms of which the commission alleges that Cape Gate contravened a section of the Competition Act by fixing the price and trading conditions and dividing the market for long steel products.
In terms of the agreement, Cape Gate agrees to a full and final settlement of the commission’s referral by effecting payment of an administrative penalty; however, it does not admit to a contravention of the Act in respect of the conduct alleged by the commission.
Among others, Cape Gate also undertakes to refrain from engaging in any anticompetitive conduct in contravention of the Act in the future; and to develop, implement and monitor a competition law compliance programme as part of its corporate governance policy.
This matter was initiated by the commission against producers of long and flat steel products in South Africa, for possible contraventions of the Competition Act, in 2008.
In September 2009, the commission referred the long steel complaint to the tribunal, alleging that firms had been involved in price fixing, the fixing of trading conditions and the division of markets.