08 Apr 2013

Corporate & Commercial Law News Alert, Competition Law Update

by Jennifer Finnigan, Partner, Durban,
Practice Area(s): Corporate & Commercial |

This morning the Competition Commission announced that it has referred a case of collusion against 6 glass manufacturers and distributors to the Competition Tribunal.  The firms implicated are Glass South Africa, National Glass, Northern Hardware and Glass, Furman Glass, McCoy’s Glass and AF-FSL Glass. 

The Commission’s investigation started in 2010 after it received a leniency application from AF-FSA Glass.  The firms implicated are accused of fixing prices and trading conditions and allocating markets for float, laminated and toughened glass in Gauteng, the Free State and the Western Cape between 1995 and 2007. 

The Commission has asked the Tribunal to impose a penalty equal to 10% of the annual turnovers of each of these firms on them, with the exception of AF-FSA Glass who was granted conditional immunity from prosecution following its leniency application.  If the Commission is successful in proving its collusion case, these firms (including AF-FSA) could also face 3rd party damages claims in addition to any penalties imposed by the Competition Tribunal.

Jennifer Finnigan, Partner & Competition Law Specialist

Contact: 031 575 7406 and finnigan@wylie.co.za