Pretoria - The Competition Appeal Court (CAC) dismissed an appeal by two bicycle and bicycle accessories wholesalers, Omnico and Cool Heat Agencies, against fines imposed for price fixing.
The Competition Tribunal in May fined Omnico R4.6 million and Coolheat R4.2 million for price fixing.
The charges against Omnico and Cool Heat flowed from a meeting of about 60 bicycle wholesalers and retailers in September 2008 at which agreement was reached to increase the advertised recommended retail price on bicycles from 35 percent to 40 percent and on bicycle accessories from 50 percent to 75 percent.
Up to 17 bicycle retailers and wholesalers reached settlement agreements with the Competition Commission, but Omnico and Cool Heat Agencies decided against similar agreements.
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The CAC said Omnico and Cool Heat appeared to dispute any “active” participation in the discussions at the meeting in 2008.
Omnico and Cool Heat claimed the meetings did not give rise to any agreement and they were silent participants in the meetings.
However, the CAC said undisputed evidence of their failure to overtly disagree or distance themselves from the contents of the final September meeting met the necessary standard of proof as being consistent, clear and convincing in determining participation in a cartel.
It said neither of the firms had placed evidence that their pricing, and increased recommended retail price in particular, following the 2008 meeting was the result of their independent decision making.