Cape Town, - South Ocean Electric Wire Company (SOEW) in Gauteng has admitted that it has engaged in price fixing, market division and collusive tendering for a nine- year period which is between November 2003 and November 2012. According to a statement , the Competition Tribunal has confirmed the administrative penalty of R13 362 855, a percentage of SOEW’s annual turnover for the financial year ending February 2010. The Commission first lodged a complaint with the Tribunal on March 16, 2010. The complaint was updated twice to include additional companies in the power cable supply market.
In its complaint, the Commission said the investigation had revealed that companies in the wire cable supply section had come to an agreement, separate to the contraventions by companies through the Association of Electric Cable Manufacturers. The investigation found that Alvern Cables, Tulisa Cables, Aberdare Cables and South Ocean Electric Wire Company had fixed the selling price of power cables to wholesalers, distributors and original equipment manufacturers (OEMS) between 2001 and 2010.
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Competition Tribunal’s Chantelle Benjamin said SOEW has admitted that it agreed, alternatively engaged in a concerted practice, with Aberdare Cables to divide the market between 2001 and 2007. SOEW, together with other power cable manufacturers, was also found to have contravened the Competition Act through decisions by the Association of Electric Cable Manufactures to fix the selling price of power cables by using a price adjustment formula which it circulated to members monthly.
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