Competition Commission hauls paper companies before tribunal for cartel conduct
Commission has been investigating Mpact and New Era Packaging since May 2016
The Competition Commission wants the Competition Tribunal to prosecute packaging paper products manufacturers and suppliers Mpact and New Era Packaging for cartel conduct. The commission said it had charged the two companies with fixing prices, dividing markets by allocating customers and tendering collusively in the market for the manufacturing and supplying of corrugated packaging paper products. JSE-listed Mpact and New Era manufacture and supply container boards and carton boards. The products are used to produce finished boxes. The finished boxes include fruit boxes and boxes for secondary packaging of wholesale goods, cereal boxes, detergent boxes and paper plates. “We are extremely concerned about the pervasive nature of this conduct in the packaging sector,” competition commissioner Tembinkosi Bonakele said. “This 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 market...
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