News 7.7.2017 10:39 am

Brick manufacturers charged with price-fixing

Picture: iStock

Picture: iStock

The companies have been charged for contravening the Competition Act by engaging in price-fixing.

Six brick makers have been charged with price-fixing and division of markets.

The Competition Commission of South Africa said the charges follow an investigation it launched in April against Corobrik, Era Bricks (Pty) Ltd (Era Bricks), Eston Brick and Tile (Pty) Ltd (Eston Brick), De Hoop Brickfields (Pty) Ltd (De Hlop), Clay Industry CC (Clay Industry) and Kopano Brickworks Ltd (Kopano), Northglen News reported.

The companies have been charged for contravening the Competition Act by engaging in price-fixing and division of markets in the manufacturing and supply of bricks, pavers and blocks of clay and concrete.

“Corobrik entered into separate bilateral agreements with each of the above companies in terms of which they agreed to divide the market by allocating specific products and/or customers, in contravention of section 4(1)(b) (ii) of the Competition Act. In addition, Corobrik and Era Bricks agreed to fix prices at which they sold bricks, pavers and blocks in contravention of section 4(1)(b)(i),” the commission said.

“Corobrik further concluded separate bilateral Distributorship Agreements with Eston Brick, Clay Industry, De Hoop and Kopano, wherein [they] agreed with Corobrik that they would not supply their respective products directly to customers in competition with Corobrik. Instead, they would each supply their respective products to Corobrik, which would then sell directly to customers,” the commission said.

Caxton News Service

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