Competition Commission refers glass cartel case to tribunal
The Competition Commission has referred its findings of cartel conduct against six glass products manufacturing and distribution companies to the Competition Tribunal.
The six companies – Glass South Africa, National Glass, Northern Hardware and Glass, Furman Glass, McCoy’s Glass and AF-FSL Glass – were facing allegations of price fixing, market allocation and the fixing of trading conditions for float, laminated and toughened glass in the Gauteng, Free State and Western Cape regions.
The commission has asked the tribunal to impose an administrative penalty of 10% of yearly turnover on each of the firms involved following a 2010 investigation into cartel activity.
AF-FSL Glass in a June 8, 2009, leniency application supplied the information on which the commission based its investigation.
The investigation revealed that between 1995 and 2007 the companies allegedly fixed minimum selling prices, the percentage by which minimum prices would increase and the date for the implementation of the fixed prices during telephone conversations and various “boys’ club” meetings.
“The cartel members further agreed not to undercut one another by providing competitive prices to customers that belonged to each other and, in 2005, they agreed to introduce a distribution or transport levy of three percent of the price charged to customers,” the commission outlined.
AF-FSL was granted conditional leniency from prosecution.
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