SINCE the Competition Act came into force in 1998, there have been investigations and prosecutions of cartels in markets such as fertiliser, food, construction, pharmaceuticals, and steel. Despite the intensified enforcement of the competition law, the Competition Commission continues to uncover cartel conduct in most markets.In May 2015, the commission, in terms of Section 79(1) of the Competition Act, published guidelines on how it would determine penalties for settlements and prosecution of prohibited practices — including price fixing, collusive tendering, excessive pricing, and predatory pricing — before the Competition Tribunal.The key distinction between a settlement and prosecution is the discount that a company may qualify for if it co-operates with the commission and provides full disclosure of the conduct in question — of 10%-50% off the potential penalty, and in some cases on favourable payment terms.The effectiveness of the guidelines partly hinges on the willingness of...
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