Margarine producer fined R35m for anticompetitive behaviour

SOUTH AFRICA – On top of the R35m fine margarine producer Sime Darby Hudson Knight has to pay for anticompetitive behaviour, the company may also face being monitored to ensure that it complies with further remedial action handed down to it for contravening the competition act.

SOUTH AFRICA – On top of the R35m fine margarine producer Sime Darby Hudson Knight has to pay for anticompetitive behaviour, the company may also face being monitored to ensure that it complies with further remedial action handed down to it for contravening the competition act.

This was the recommendation of the Competition Tribunal on Thursday during a hearing on collusion in the edible fats and oils industry.

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Sime Darby Hudson Knight makes and sells bakery fats and frying oils.

In 2014, the Competition Commission raided its Boksburg offices as well as those of Durban-based Unilever during its investigations into restrictive price behaviour in the industry.

It found that Sime Darby Hudson Knight had entered into an agreement that precluded it from supplying certain pack sizes of edible fats and oils to a number of customer channels.

The agreement meant that it could not supply retail outlets, and other areas where Unilever was active.

As part of the Commission’s remedial action, which includes the R35m fine, Sime Darby Hudson Knight agreed to supply the retail sector with its products and to build a new warehousing facility to accommodate this.

The company also said it would use the services of an empowerment distributor and assist it with distribution requirements where necessary.

It is these steps that the Tribunal recommended be subject to monitoring.

April 14, 2016; http://www.bdlive.co.za/business/retail/2016/04/14/margarine-producer-fined-r35m-for-anticompetitive-behaviour

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