JOHANNESBURG South Africa (Xinhua) --
The South African Competition
Commission referred a cartel case on Wednesday to the
Competition Tribunal for prosecution of Unilever South Africa
and Sime Darby Hudson Knight (Sime Darby).
The two companies
contravened the Competition Act by dividing the markets through
allocating specific types of products and customers goods in the
market for the manufacturing and supply of bakery and cooking in
the Competition Commission revealed that between 2004 and 2013,
the two companies entered into a Sale of Business agreement,
which contained a clause in which they agreed not to compete
with each other in respect of certain pack sizes of margarine
and edible oils.
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,” said
Commissioner Tembinkosi Bonakele.
Commission wants Unilever to pay 10 percent of its annual
turnover as a fine for the cartel case.
Sime Darby settled
with the Competition Commission last July, and was then fined
2.7 million U.S. dollars for the anti-competitive conduct. It
was also forced to invest 10.4 million dollars in a new
packaging and warehousing facility.