Competition Commission further appeals court findings

23rd July 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

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, which resulted in SCI being penalised R534-million for overcharging local customers for plastic products.

The commission was appealing against the whole judgment and order that was handed down by the CAC on June 17. The commission was concerned that this judgment would constrain competition enforcement against dominant firms.

After a hearing concluded in October 2013, 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.

The fundamental issue raised in the application for leave to appeal was whether Section 8 (a) of the Competition Act, which prohibited a dominant firm from charging an excessive price to the detriment of consumers, should be interpreted and applied in a manner that permitted Sasol to charge maximum prices in perpetuity, “particularly in circumstances where Sasol acquired its dominant position through the previous government’s support and was a low-cost producer”, the commission said in a statement.

To watch Creamer Media's latest video reports, click here
 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION