SOUTH AFRICA - Competition Commission Proposes
Penalty for Six Glass Suppliers
April 10, 2013
by Penny Stacey, email@example.com
The South African Competition Commission (SACC) has conducted an
investigation into the dealings of six glass suppliers and has charged
them with "cartel conduct" and proposed that a penalty
be levied against them.
The SACC had investigated Glass South Africa, National Glass, Northern
Hardware and Glass, Furman Glass, McCoy's Glass and AF-FSL Glass
and proposed that an administrative penalty of 10 percent of annual
turnover be imposed on each of the firms involved.
According to a report from the SACC, the manufacturers face 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 of South Africa.
The SACC initiated the investigation in February 2010 based on
information it received in a leniency application by AF-FSL Glass
on June 8, 2009, according to Monday's report. AF-FSL was granted
conditional leniency from prosecution.
In its investigation, the SACC found that between 1995 and 2007
cartel members had telephone conversations and held various "boys'
club" meetings where they fixed minimum selling prices, the
percentage by which minimum prices would increase and the date for
the implementation of the fixed prices. The alleged meetings were
held at hotels, pubs, sports clubs and on boat trips to Zimbabwe,
according to the report.
During the 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 3-percent distribution
or transport levy to the price charged to customers, according to
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