Bicycle wholesalers Omnico and Cool Heat lose competition appeal case
The Competition Appeal Court has dismissed an appeal by bicycle wholesalers Omnico and Cool Heat Agencies against a Competition Tribunal decision that the two companies had engaged in price fixing in contravention of the Competition Act. The decision by the appeal court was welcomed by the Competition Commission on Tuesday. Administrative penalties of R4.6m and R4.3m had been imposed by the tribunal on the two companies respectively. The court upheld the tribunal’s finding that the two companies had agreed to fix prices. It ordered them to pay costs. Omnico was however granted a 50% discount on its penalty. The case dates back to 2008 when about 20 bicycle retailers and wholesalers were found to have agreed to fix prices at a meeting held on September 10, 2008. The commission investigated all parties who were present at the meeting and concluded settlement agreements with 11 bicycle retailers and six wholesalers before the hearing of the Competition Tribunal. However, Omnico and Coo...
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