Competition Commission to take on Allens Meshco over alleged price fixing - CNBC Africa

Competition Commission to take on Allens Meshco over alleged price fixing

Southern Africa

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The tribunal will take into account an application by Allens Meshco and others to postpone the trial. PHOTO: onehourtranslation

The case, which involves Allens Meshco, Wireforce, Hendok, Independent Galvanising and Associated Wire Industries t/a Meshrite, is in connection with the price fixing of the galvanized wire and wire products industry and the supply of nails.

"The commission alleges that the respondents, who are all competitors, were engaged in a concerted practice to fix the prices, directly or indirectly, of light galvanised wire," the Competition Tribunal said.

“The commission further alleges that three of the respondents formed a body called the ‘Allens Meshco Group’ and either entered into an agreement or engaged in a concerted practice to fix the prices of nails."

(READ MORE: Competition Tribunal approves Adcock-BB Investment Company merger)

Before the hearing, the tribunal will take into account an application by Allens Meshco and the other defendants to postpone the trial.

“The basis for the postponement request is that a separate application was brought to the High Court by Allen Meshco and nine other respondents to review the Competition Commission’s decision not to consider or grant leniency to these respondents,” the tribunal said. 

"The judgment in this case is still awaited."

(READ MORE: Commission approves Lewis-Beares merger)

The commission however, will argue that the trial should not be postponed as the High Court matter can be separated from the matter before the tribunal.

If found guilty, the commission has asked the Competition Tribunal to fine the defendants a maximum of 10 per cent of their firm’s annual turnover.

The hearing is set for 22 January to 4 February.

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