Johannesburg - The Competition Commission on Friday laid bare its case against Unilever for its role in colluding in the manufacture and supply of baking and cooking products, urging the Competition Tribunal to impose a 10 percent of revenue fine against the multinational consumer goods company.
The commission deposed its founding affidavit through which it pledged to push for the maximum penalty against the company.
The commission also reiterated it did not want to prefer any penalties against Unilever’s main accomplice in the matter, Sime Darby.
“The commission seeks an order declaring the Unilever South Africa to be liable to pay an administrative penalty equal to 10 percent of its annual turnover in terms of section 58 (1)(a)(iii), read with section 59 (2), of the act,” the commission said.
Earlier in the week the commission said it would prosecute Unilever for its role in the cartel.
The graft agency found that, between 2004 and 2013, Unilever and margarine and cooking-oil-maker Sime Darby allegedly entered into an agreement not to compete on certain packs of margarine and edible oils.
The commission said the two agreed that Sime Darby would not supply industrial customers with packs of margarine that were less than 15kg, nor would it produce or supply 25-litre edible oils in markets where Unilever was active.
In return, Unilever agreed to not supply industrial customers with its Flora-brand of edible oils, it said.
Last year, Sime Darby settled with the commission, agreeing to pay a fine of R35 million for collusion and to invest R135 million in packaging and warehousing facilities that would compete with Unilever for retail customers.
The company also agreed to appoint a black economic empowerment distributor.
Read also: Unilever facing fine for collusion
“Once the new packaging and warehousing facility is operational, the BEE distributor will transport some of Sime Darby's edible fats and oils from this new facility to various clients,” the commission said.
On Friday, the commission's Tshepiso Mnguni said the investigation was extended at least five times between September 2013 and April 2016 on agreement with Unilever.
The commission said the R35 million fine was lower than Sime Darby's annual turnover because it had admitted guilt in the matter and co-operated. Since inception, the commission and the tribunal have levied administrative penalties of more than R6 billion on companies for uncompetitive behaviour.
The Unilever probe comes just three weeks after the commission announced that it was pursuing a case against nearly 20 South African and international banks for colluding in the trading of foreign exchange.
Barclays Africa Group and Citibank had settled with the commission.
Commissioner Thembinkosi Bonakele said food and agro-processing formed an important focus area.
Unilever said it would not be commenting on the matter.