The Commission has found that Spring Lights was involved in anti-competitive conduct with Sasol Gas, resulting in market division and the fixing of prices. Spring Lights has agreed to pay an administrative penalty of ZAR 10 million. The agreement follows an investigation by the Commission that resulted from a leniency application filed by Sasol on behalf of its subsidiary, Sasol Gas.
Sasol Gas holds 49% of the issued capital of Spring Lights. The remaining 51% is held by CEPR. Sasol Gas facilitated the creation of CEPR as part of its black economic empowerment (BEE) plan. CEPR then created Spring Lights for the purpose of acquiring a portion of Sasol Gas' business. As a result of the acquisition, Spring Lights concluded various agreements with Sasol Gas, one of which was an Administration Services Agreement that would allow Sasol Gas to assist Spring Lights in implementing price adjustments agreed to by Spring Lights and its customers.
The Commission found the parties' conduct to constitute price fixing in contravention of the Competition Act. Furthermore, in terms of the purchase agreement, Spring Lights was only entitled to operate in the Durban South region. The Commission found this to be an unlawful allocation of markets in contravention of the Competition Act.
Spring Lights has signed a consent order in which it agreed to put several measures in place to prevent any future reoccurrence of anti-competitive conduct including having its directors which were active in Sasol Gas resign.
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