Competition Commission accuses fresh-produce agents of cartel behaviour
The Competition Commission carried out a search-and-seizure operation at the premises of nine fresh-produce market agents on Thursday morning. According to the commission, SA has about 30 fresh-produce market agents, with about 80% of this market controlled by the biggest six players. The commission said it suspected the larger players of colluding to hold prices low until their smaller competitors ran out of fresh fruit and vegetables to sell, after which they sharply increased prices. "Thus, certain volumes of stock of fresh produce are sold during late hours of trading with the aim to manipulate prices," the statement said. "They, by agreement, increase prices paid for fresh produce. It is also suspected that the agents reserve certain fresh produce grades for particular buyers. It is alleged that the agents practise price discrimination based on the identity of the buyers," the commission said. "Given the sheer size of the suspects, the suspected [cartel’s conduct] results in a ...
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