Unilever charged for cartel conduct

This follows the investigation by the Commission which found that Unilever and Sime Darby divided markets by allocating specific types of products and customers goods in the market for the manufacturing and supply of bakery and cooking products throughout South Africa.

This conduct, according to the Commission, contravened section 4 of the Competition Act.

The Commission said its investigation found that from at least 2004 to 2013, Unilever and Sime Darby entered into a sale of business agreement, which contained a clause in terms of which they agreed not to compete with each other in respect of certain pack sizes of margarine and edible oils.

In 2014, the Commission received a search warrant from the High Court, Gauteng Division, Pretoria and KwaZulu-Natal, Pietermaritzburg, for a search warrant to enter and seize information, documents, data and records from the premises of both companies.

The Commission subsequently conducted a search and seizure operation at the offices of Sime Darby in Boksburg and the Unilever offices in Durban. Electronic data and hard copy documents were seized.

Following the search and seizure operation, Sime Darby entered into settlement discussions with the Commission and settled with the Commission in 2016.

The Commission is now seeking an order from the Competition Tribunal declaring that Unilever and Sime Darby contravened Section 4 of the Competition Act, as well as an order declaring Unilever liable for payment of an administrative penalty equal to 10 percent of its annual turnover.

Commissioner, Tembinkosi Bonakele, said: “Food and agro-processing is an important focus area for the Competition Commission, and we are determined to root out exploitation of consumers by cartels that are so prevalent in this sector.”

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