The Competition Commission is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the Government of South Africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy.
Wheat milling cartel referred for prosecution
The Competition Commission, subsequent to its investigation into collusion in the wheat milling market, has referred its findings to the Competition Tribunal against Pioneer Foods (Pty) Limited (“Pioneer”), Foodcorp (Pty) Limited trading as Ruto Mills (“Foodcorp”), Godrich Milling (Pty) Limited (“Godrich”), Premier Foods (Pty) Ltd (“Premier Foods”) and Tiger Brands Ltd (“Tiger Brands”).
The case was initiated following revelations by Premier Foods during the bread cartel investigation that the cartel, which involved largely the same companies, also covered their milling operations. Premier Foods and Tiger Brands were subsequently granted conditional immunity from prosecution by the Commission provided that they fully co-operate in the Commission’s investigation and prosecution of this case.