The Competition Commission has filed an application with the Constitutional Court for leave to appeal a June decision by the Competition Appeal Court (CAC) to uphold Sasol Chemical Industries’ (SCI’s) appeal against a Competition Tribunal finding that resulted in a R534-million penalty for overcharging local customers for plastic products.
After an October 2013 hearing, the tribunal found against Sasol in relation to its pricing of propylene and polypropylene. At the time, the tribunal said pricing of the two products, key inputs in manufacturing of industrial and household plastic products, would have a knock-on effect on the price of household plastic goods and industrial products.
In addition to the penalty, the tribunal had also determined a method for the company to use in pricing these products in future.
SCI appealed the tribunal’s decision at the CAC, which last month overturned the decision of the tribunal.
Noting that the appeal had been filed with the CAC, the commission this week said it remained concerned that the CAC judgment would constrain competition enforcement in respect of dominant firms.