The Competition Commission has welcomed the Competition Tribunal’s order confirming a settlement agreement concluded between the Commission and the Allens Meshco Group (AMG) in connection with collusive conduct in the wire industry.

In terms of the settlement agreement, the AMG which consists of Allens Meshco (Pty) Ltd, Agri Wire (Pty) Ltd, Agri-Wire North (Pty) Ltd, Agri-Wire Upington (Pty) Ltd, Cape Wire (Pty) Ltd, Forest Wire (Pty) Ltd, Independent Galvanising (Pty) Ltd, Associated Wire Industries (Pty) Ltd t/a Meshrite, admits guilt to collusive practices. Additionally, AMG has agreed to pay an administrative penalty of R5 million for its involvement in cartel conduct within the wire industry.

The Tribunal’s confirmation of the settlement agreement on Wednesday, 22 November 2023, concludes the Commission’s legal proceedings concerning cartel conduct within the wire industry. Before this, the Commission had successfully reached settlement agreements with Cape Gate, Hendok, and Wireforce for their involvement in collusive practices within the wire industry.

In 2009, the Commission referred a complaint against AMG and its competitors, including Cape Gate, Hendok, Wireforce, and CWI, for engaging in collusive conduct in contravention of section 4(1)(b)(i) of the Competition Act 89 of 1998, as amended. The Commission’s investigation revealed that between 2001 and 2008, AMG and its competitors had colluded to fix the selling prices of wire and wire-related products in South Africa. This collusion involved establishing a common national price list and specific discounts from that list.

Tribunal confirms Cape Gate settlement agreement in long steel cartel case
In June 2023 Cape Gate (Pty) Ltd (“Cape Gate”) agreed to pay a R1.3 million administrative penalty for alleged anticompetitive practices in the market for the production of long steel products in South Africa.

The agreement settled the dispute between the Competition Commission and Cape Gate in terms of which the Commission alleges that Cape Gate contravened the provisions of section 4(1)(b)(i) and (ii) of the Competition Act by fixing the price, trading conditions and dividing the market for long steel products.

In terms of the agreement, Cape Gate agrees to a full and final settlement of the Commission’s referral by effecting payment of an administrative penalty in the sum of R1 375 344.32. However, Cape Gate does not admit to a contravention of the Act in respect of the conduct alleged by the Commission.

Among others, Cape Gate also undertakes to refrain from engaging in any anti-competitive conduct in contravention of the Act in the future; and to develop, implement and monitor a competition law compliance programme as part of its corporate governance policy.