Tribunal dismisses price fixing, tender collusion case against Bloemfontein companies
The Competition Tribunal has dismissed a case of alleged price fixing and collusive tendering against five Bloemfontein-based companies accused of colluding on a Free State Treasury tender to supply and deliver office stationery to provincial government departments in 2014.
Catha Silkscreen Printers, Melemo Trading, Lounge 848, Nakanyane Business Solutions (NBS) and V Litabe and Seema Trading are competitors in the market for the supply of office stationery.
The Competition Commission referred the companies to the tribunal in 2017, after receiving a complaint and subsequently investigating such.
The commission alleged that the companies had submitted similar bids, including the same or similar prices for certain stationery items and similar letters from suppliers, in response to the tender. The commission argued that this conduct was the result of an agreement and/or a concerted practice between the companies and constituted price fixing and collusive tendering.
The companies, however, denied that they had colluded with each other when bidding for the tender.
In its order and reasons, the tribunal noted that there was “simply no evidence” that the companies had reached an agreement among themselves. In addition, the tribunal has found that the commission led no evidence to substantiate the “concerted practice” argument either.
A full copy of the order and reasons will be made available on the tribunal’s website in due course.
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