Picture: iStock
The Competition Commission has welcomed the Competition Tribunal’s order that DH Brothers Industries (Pty) Ltd, trading as the Willowton Group, will pay a settlement of R1 million and public interest commitments amounting to R100 million.
The order was handed down on Monday after nine years of litigation between the Commission and the Willowton Group over allegations of price fixing regarding edible oils and baking fats.
The Competition Commission is an independent adjudicative body established to regulate competition between firms in the market. It adjudicates on matters referred to by the Competition Commission.
The Commission is the investigating and prosecuting agency in the competition regime, while the Tribunal is the court.
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The Commission initiated a complaint against the Willowton Group and six other entities on 02 December 2016.
It was alleged that Willowton Group and others engaged in price fixing and/or fixing of trading conditions in the market for the supply of edible oils, including baking fats and margarine in South Africa, in contravention of section 4(1)(b)(i) of the Competition Act 89 of 1998.
That section of the Act prohibits price fixing, bid rigging and market allocation.
“The Commission has not made any findings against the Willowton Group,” reads the press statement from the Commission.
The statement also details that the entities allegedly agreed on price increases for edible oils, including baking fats and margarine, and the timing for such increases.
“The conduct is alleged to have been in place since 2007.
“This settlement follows protracted litigation between the Commission and the Willowton Group, which included setting aside the Commission’s warrant to search and seize evidence from the Respondents’ premises and reviewing the application to set aside the Commission’s summons and investigation.
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The North Gauteng High Court was yet to hear the review application when the Commission and the Willowton Group agreed on the settlement.
However, the settlement is agreed upon without admission of liability.
The Commission added that the Willowton Group has made public interest commitments amounting to R100 000 000 over five years, including a bursary fund of R20 000 000 over the same period.
“The bursary is intended for tertiary education students who are historically disadvantaged persons from underprivileged schools.
“At least 60% of the bursary recipients must be female students.”
In addition, the Willowton Group will advertise the details of the bursary fund in a national newspaper and/or electronic media and on social media platforms within 90 days from the settlement date, inviting applicants to submit applications within 30 days.
“The Willowton Group will donate food products and groceries to registered non-governmental and non-profit organisations catering to historically disadvantaged persons to R30 000 000 over five years.
“Non-governmental and non-profit organisations will be able to find information on how to submit applications for the donation in a national newspaper, electronic media or social media platform within the next 30 days.
“Finally, the Willowton Group has committed to procuring products and services to R50 000 000 from Level 1 B-BBEE service providers over the five years.”
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The other entities that were also included in the allegations are Wilmar Continental Edible Oils and Fats (Pty) Ltd, FR Waring Holdings (Pty) Ltd, Africa Sun Oil Refineries (Pty) Ltd, Epic Foods (Pty) Ltd, Sea Lake Investments (Pty) Ltd and Unity Food Products (Pty) Ltd
The investigation against Wilmar Continental Edible Oils and Fats (Pty) Ltd, Africa Sun Oil Refineries (Pty) Ltd, Epic Foods (Pty) Ltd, Sea Lake Investments (Pty) Ltd and Unity Food Products (Pty) Ltd is ongoing.
The Commission’s investigation against FR Waring Holdings (Pty) Ltd has since been discontinued.
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