South African Competition Commission Cracks Down On Cartels

The South African antitrust authorities kept their promise to combat cartel activity in 2007. A number of cases involving price fixing and market division in key sectors of the South African economy were referred by the Competition Commission to the Competition Tribunal for adjudication.

In February last year, for example, the Commission initiated an investigation into price fixing and market division in the bread industry by Pioneer Foods (Sasko and Duens Bakeries), Premier Foods (trading as Blue Ribbon Bakery) and Tiger Brands (Albany Bakeries) after it received telephone complaints from several independent distributors of bread in the Western Cape. The Commission extended its investigation nationwide and also initiated a separate investigation into various practices in the milling industry. In November last year, the Tribunal confirmed a settlement agreement in which one of the cartel members, Tiger