South African Tribunal Imposes Maximum Fines in Bread Cartel Case

03 Feb 2010

The case concerned complaint referrals brought by the Competition Commission against Pioneer Foods (Pty) Ltd, in which Pioneer’s bread baking divisions, Sasko and Duens, are alleged to have formed part of bread manufacturers’ cartels that fixed prices and divided markets under sections 4(1)(b)(i) and (ii) of the Competition Act.

Tiger Brands and Foodcorp, the other colluding parties agreed to a penalty and to the implementation of compliance programmes in their organisations.

The tribunal handed the Pioneer Foods (Pty) Ltd the maximum penalty due to a lack of co-operation with the agencies and the fact that to date it has not taken disciplinary action against, at date of hearing, a single person involved in these contraventions.

The total penalty imposed on Pioneer Foods (Pty) Ltd in respect of these complaints is 195 million rand.

David Unterhalter SC appeared for the Competition Commission

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David Unterhalter SC