South Africa’s Competition Commission has accused the country’s largest bread makers of “blatant profiteering” amid claims the companies colluded to raise prices.
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The watchdog has demanded an explanation for the price hikes that it claims were introduced even after it launched an investigation into the sector.
The anti-trust body also warned it would not be stopping with the fine levied against Tiger Brands last November.
“This blatant profiteering is an insult to the nation, particularly the poor,” said Competition Commissioner Shan Rambruth. “It demonstrates that the collusion is continuing or the cartel members are acting to maintain the artificially-high margins they achieved by acting unlawfully.
Rambruth added: “Should evidence show that the collusive behaviour is continuing we are able to withdraw the immunity we’ve granted to other players. We are also prosecuting the remaining cartel members, Pioneer and Foodcorp. Perhaps most shockingly, we have received new allegations of other anti-competitive behaviour by these parties, which we are vigorously pursuing.”
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By GlobalDataSouth African conglomerate Tiger Brands was hit with a ZAR98.7m (US$14.7m) fine for its participation in bread and milling cartels last year.
The company, which owns the Albany bread brand, reached a deal with the commission after being found guilty of breaking competition law.
