Corrugated packaging paper companies prosecuted for collusive conduct
The Competition Commission has referred a case of alleged cartel conduct against packaging and paper companies Mpact and New Era Packaging to the Competition Tribunal for prosecution.
The two companies have been charged with fixing prices, dividing markets by allocating customers and tendering collusively in the market for the manufacture and supply of corrugated packaging paper products.
The referral follows an investigation initiated by the Competition Commissioner on May 16, 2016, against the companies.
The commission’s investigation found that from the 1980s to 2015, Mpact and New Era had an alleged agreement not to compete with each other for customers for the supply of packaging paper products. This was achieved by agreeing to allocate customers and ensuring that they did not bid in competition with each other in respect of the allocated customers.
The investigation also found that Mpact and New Era had allegedly rigged the bids they submitted to customers in order to prevent other market players from competing with them for the business of their allocated customers.
Competition Commissioner Tembinkosi Bonakele on Monday said cartel conduct affects most products, including the packaging of basic food stuff.
“It is largely the poor who bear the brunt of this manipulation of prices and division of markets,” he lamented.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation