Photo by: Duane Daws
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.