| Mon 19 Jan 2009, 10:01 | | GEN - Competition Commission initiates complaints in piped gas and petroleum |
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JSE
THEE
GEN - Competition Commission initiates complaints in piped gas and petroleum
products
Media release from the Competition Commission
19 January 2009
Competition Commission initiates complaints in piped gas and petroleum products
Pursuant to receiving leniency applications from Sasol Gas related to cartel
conduct in the supply and pricing of piped gas, the Competition Commission has
initiated an investigation, citing respondents including Egoli Gas (Pty) Ltd,
Spring Lights Gas (Pty) Ltd, and Coal Energy and Power Resources Ltd. The
conduct being investigated involves market allocation and/or price fixing
agreements.
The Commission has also initiated an investigation into anti-competitive conduct
in relation to a range of products in the petroleum value chain, citing the past
and present members of the South African Petroleum Industry Association (SAPIA)
and the Southern African Bitumen and Tar Association (SABITA). The Commission
has received leniency applications from Sasol Oil related to the conduct being
investigated.
Sasol seeks to engage with Competition Commission on possible contraventions by
Sasol Nitro division of Sasol Chemical Industries
Following a complaint lodged by Nutriflo cc, the Competition Commission
initiated an investigation in 2003 and uncovered evidence of anti-competitive
conduct including of a collusive nature on the part of Sasol Nitro, a division
of Sasol Chemical Industries Ltd, Yara (South Africa) (Pty) Ltd (formerly
Kynoch) and Omnia Fertiliser Ltd, contravening section 4 of the Competition Act.
The Commission subsequently referred these allegations to the Tribunal for
determination in 2006. The Tribunal has still to hear the case.
During 2007, the Competition Commission initiated a further complaint related to
anti-competitive conduct on the part of Foskor (Pty) Ltd and Sasol`s Sasol Nitro
division alleging that the two respondents had inter alia colluded to divide the
phosphoric acid market between themselves, in violation of section 4 of the
Competition Act. The initiation by the Commission followed a leniency
application, and the investigation is still underway.
The products involved in these cases relate to forms of ammonium nitrate, other
nitrogenous fertilizer products, and phosphoric acid, which is used in the
production of fertilizer and other products. The Commission can now reveal that
Sasol has recently approached the Commission with a view to reaching settlement
on these matters.
Resolving cases of alleged collusion
The Commission welcomes the approaches received recently in the form of both
applications for leniency and possible settlement, where leniency would not
apply. Through cooperation by companies in these ways the Commission is able to
resolve cases more rapidly and effectively, to put an end to collusion and
ensure more competitive prices.
ENDS
Prepared by: FD Beachhead
Dani Cohen 021 487 9021 / 082 897 0443/ dani.cohen@fd.com
Senzi Dlamini 011 214 2420 / 073 494 0030 / senzi.dlamini@fd.com
On behalf of: The Competition Commission
Further info:
Nandi Mokoena, Manager of Strategy and Stakeholder Relations
012 394 3286 / 082 399 1328 / nandisilem@compcom.co.za
Date: 19/01/2009 10:01:01 Produced by the JSE SENS Department.
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