The Competition Tribunal has given the Competition Commission until January 31, to provide clarity on some of the charges bought against one of four companies in the pelagic fish sector.
The commission, in its complaint, alleged that Pioneer Fishing and local food company Foodcorp had entered into at least three agreements between 2002 and 2009, during which they fixed the price of pelagic fish to retailers and wholesalers, through the exchange of sensitive information.
Pioneer is also alleged to have repeatedly put pressure on Foodcorp to increase its prices, besides other things.
Foodcorp asked the tribunal to order the commission to amend its complaint referral to the tribunal, noting that the present referral was “vague and embarrassing”. The tribunal agreed that certain parts of the complaint required clarification.
The tribunal asked for clarity on a number of matters, including what agreements or concerted practices had taken place, what prices were fixed and for what product. It is also not clear when Premier exchanged its price list with Foodcorp and whether the exchange was bilateral.
Foodcorp, at its hearing, said the allegations against the company for alleged price fixing with Pioneer were not detailed enough to answer the case against it.
The complaint is also not clear on Foodcorp’s response to Pioneer’s alleged pressure on it to increase its prices. Foodcorp will have 20 days to respond once the commission has submitted the amended complaint.
The three other companies investigated by the commission, have settled.
Saldanha Foods admitted it contravened the Competition Act when it agreed, as a member of the South African Pelagic Fish Processors Association, to fix prices paid to vessel owners or operators, skippers and crew for the service of catching pelagic fish.
This took place between the mid-1990s and 2010. Saldanha Foods agreed, among other things, to pay a penalty of R4-million for its involvement.
Oceana Brands and Pioneer have also paid penalties of R34.7-million and R2.1-million, respectively.