The Competition Commission (Commission) has referred a complaint relating to an alleged glass cartel to the Competition Tribunal (Tribunal). The Commission alleges that the firms referred to in the complaint were involved in price fixing, market allocation and the fixing of trading conditions for float, laminated and toughened glass in the Gauteng, Free State and Western Cape regions.
This referral is the product of an investigation launched in February 2010, after AF-FSL Glass applied for leniency in June 2009. The referral involves six firms that manufacture and distribute glass products: Glass South Africa, National Glass, Northern Hardware and Glass, Furman Glass, McCoy’s Glass and AF-FSL Glass (Cartel Members).
The Commission has found evidence of the cartel from 1995 until 2007. It has found that the Cartel Members had various telephone conversations and held various so-called 'boys' club' meetings at hotels, pubs, sports clubs and boat trips to Zimbabwe where the fixed prices and trading conditions by setting minimum selling prices, fixed the percentage by which these minimum prices would increase, and allocated markets to one another.
The Commission has asked that the Tribunal impose an administrative penalty of 10% of the annual turnover on each of the firms involved.
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