TRIBUNAL CONFIRMS SETTLEMENT AGREEMENT BETWEEN COMMISSION AND LENIENCY APPLICANT IN POWER CABLE CARTEL CASE

 14 October 2020


The Competition Tribunal (the Tribunal) has confirmed, as an order, a settlement agreement between the Competition Commission (the Commission) and cable manufacturer, Aberdare Cables (Pty) Ltd (Aberdare).

 

This forms part of a long-running cable cartel case which the Commission initially started investigating in March 2010 against Aberdare Cables and three other companies, for possible cartel activity in the market for the supply of electric cables. In both May 2010 and May 2012, the Commission expanded its investigations to include more cable manufacturers.

 

A full copy of the settlement agreement will be made available on the Tribunal’s website at www.comptrib.co.za in due course.

 


Settlement agreement

 

Aberdare applied for corporate leniency in terms of the Commission’s Corporate Leniency Policy (CLP) and was granted conditional immunity by the Commission from prosecution before the Tribunal in March 2012. According to the settlement agreement, Aberdare has co-operated with the Commission and has complied with the requirements set out in the CLP.  

 

Aberdare admits to price fixing, market allocation and collusive tendering in contravention of section 4(1)(b)(i), (ii) and (iii) of the Competition Act (the Act). In terms of the settlement agreement, this admission applies to the extent that the conduct in question is the subject of completed proceedings against other respondents in the matter.

 

Aberdare shall develop, implement and monitor a competition law compliance programme incorporating corporate governance designed to ensure that its employees, management, directors and agents do not engage in future contraventions of the Act.

 


Commission’s case

 

Informal market conduct

 

The Commission found that Aberdare and three other companies had agreed to fix the price of power cables sold to wholesalers, distributors and original equipment manufacturers from around May 2001 to at least 2010.

 

It also found that Aberdare and two other companies had agreed, or engaged in a concerted practice, to divide markets by allocating customers in respect of the supply of power cables from around 2001 to at least the end of 2007.

 

Formal market conduct

 

The Commission also accused Aberdare of collusive tendering in respect of tenders issued by various municipalities as well as Eskom. It further alleged Aberdare was involved in allocating customers in the mining industry.

 

Association conduct

 

The Commission alleged that various power cable manufacturers, by way of decisions by the Association of Electric Cable Manufacturers, fixed the selling price of power cables.

 


 

Issued by:

Gillian de Gouveia, Communications Officer

On behalf of the Competition Tribunal of South Africa
Tel: +27 (0) 12 394 1383
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib


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