Price Fixing Under The Competition Act

The Competition Act 89 of 1998 (hereinafter referred to as the Act) prohibits price fixing and collusion between competitors. The aforementioned conduct is commonly referred to as ‘anti-competitive conduct or behavior'. The Act encompasses certain aspects such as public interest and socio-economic upliftment. This is to ensure that customers have options regarding their purchases and to ensure competition exists in the market.

The collusion and price fixing in one sector can lead to many injustices for the average South African consumer. For instance, in 2006, a group of bread producers in South Africa were found guilty of price fixing and collusion. This led to a decline in consumer surplus and resulted in prices increasing above marginal costs.¹