Competition News Dec-Mar 2018

COMPETITION NEWS EDITION 60 | MARCH 2018

competition commission south africa

FURNITURE REMOVAL CARTEL TARGET GOVERNMENT AGENCIES ALSO UNDER ATTACK

IN THIS ISSUE:

03 UPDATE ON COMMISSION ONGOING INVESTIGATIONS

T he Commission continues to adopt a ‘zero tolerance’ stance towards cartel conduct (collusion) because this phenomenon has the most severe impact on competition and consumers. South Africa has been characterised as being wrought with pervasive anti- competitive behaviour and one such area is the provision of furniture removal services particularly for government and its agencies. The industry has entrenched, ubiquitous coordination and endemic practices of collusive conduct, according to a Commission industry-wide investigation launched in 2010.

The Commission found that in the furniture removal industry, a general requirement is that the removal of furniture of government employees requires at least two quotes in order to be financed by government. In this regard, furniture removal companies had an arrangement that the company approached first would source the second quote on behalf of the client from its competitor. Thefirst companywouldstipulate the price at which its competitor should price the tender. The company that requested the quote would also ask its competitor to send its quote directly to the customer. This type of quote is known as a cover quote. It is a price provided by a company that wishes to win a tender to another company that does not wish to do so.

22 SA GIVES APPROVAL FOR HISTORIC MERGER

42 14 FRESH PRODUCE AGENTS & INSTITUTE CHARGED FOR PRICE FIXING

... Continued on page 4

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