Kap Diversified Industrial goes to High Court in competition matter
This was after the commission on Friday said that it had found Kap, and/or its former parent Steinhoff, and a competitor in the wood panelling and decorative market Sonae Auraco, had engaged in cartel activity by fixing prices, the percentage of price increases, and what prices should be charged to top clients between 2009 and 2016. Kap, through its PG Bison operations, and Sonae are the largest manufacturers of wood-based panel products in South Africa that are used to build commodities such as cupboards, furniture and caskets.
The companies had also met frequently at the time to discuss and agree on the percentage amount of price increases, and the dates to effect such increases, the commission said.
The commission referred the matter to the Competition Tribunal, with a recommendation that Kap and/or its former parent Steinhoff, pay a fine of up to 10percent of revenue.
The commission did not intend to seek a penalty against Sonae, as Sonae had admitted liability and agreed to pay a R46.9million fine, and had agreed to testify against Kap and/or Steinhoff.
Source: iol.co.za
