The Competition Commission has referred a division of markets case against Beefcor and Cape Fruit Processors (CFP) to the Competition Tribunal for prosecution.
It is alleged that the two companies had agreed not to compete with each other in the processing of wet peels and citrus peel pulp, which are by-products in the production of fruit juice, to produce livestock feed.
Further, it is alleged that CFP agreed to not sell the wet peels and citrus peel pulp produced by it to any other entity without the express written permission of Beefcor.
“This agreement constitutes market division by allocating customers in contravention of section 4(1)(b)(ii) of the Competition Act,” says the commission.
It states that the agreements were signed in 2016 and are ongoing.
The commission is seeking an order from the tribunal that Beefcor and CFP are liable to pay an administrative penalty equivalent to 10% of their respective annual turnover.