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The price paid for price colluding... 26 July 2017

Lerato Motaung                                                   

Registrar: Competition Tribunal                                        

Tel: (012) 394 3355                                             

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E-Mail: LeratoM@comptrib.co.za

The price paid for price colluding... 26 July 2017

On 26 July 2017 at 13:24, Chantelle Benjamin <chantelleb@comptrib.co.za> wrote:

Tribunal has confirmed a settlement agreement with fire supply company Fireco Gauteng  

The Tribunal has confirmed a settlement agreement, heard on 11 July 2017, concerning Fireco Gauteng (Pty) Ltd (now KRS Fire (Pty) Ltd) who specialises in supplying, installing and maintaining fire control and protection systems. The second settlement in the same cartel matter.  

On 13 March 2015, the Commission initiated an investigation against a number of firms, including Fireco Gauteng for fixing prices, dividing markets and tendering collusively in the relevant market. 

As a result of the investigation, it was found that during or about the period of at least 2012 till March 2015 Fireco Gauteng together with other respondents in this cartel were found to have entered into agreements to fix prices and tender collusively in the relevant market.  

The Tribunal, after raising the fact that the wording of the consent agreement in essence meant that Fireco Gauteng’s conditional leniency in respect of market allocation was granted rather than being conditional as intended, received an addendum to the consent agreement. After considering the addendum, which addressed the Tribunal’s concern, the matter was made an order of the Tribunal. 

Fireco Gauteng will pay an administrative penalty of R909 376.29 for collusion.  

In the same cartel matter, the Tribunal on 19 July confirmed a settlement agreement in which Afrion Property Services CC (Afrion), also specialising in supplying, installing and maintaining fire control and protection systems in South Africa and the continent, who will  pay R327 201.85 for collusion with Independent Fire Protection Services. The latter has since ceased operating.

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