CompCom goes after Corobrik and Smartstone for price-fixing

South Africa’s Competition Tribunal will on Wednesday hear an application by the Competition Commission (CompCom) in which it seeks to add a price-fixing charge to its charge sheet in its case against brick manufacturers Corobrik and Smartstone Precast.

The CompCom made the application following the discovery of new information in the matter, which is already sitting before the tribunal.

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The competition body initially accused the two brick manufacturers of being in breach of the Competition Act by dividing markets and allocating or supplying bricks, pavers, and blocks of clay and concrete to specific customers.

It now wants to amend its charge sheet, or complaint referral, to add a price-fixing charge, the tribunal said in a statement on Tuesday.

Smartstone, the Johannesburg-headquartered brick maker, is opposing the commission’s amendment application, according to the tribunal.

It holds the view that the CompCom has not complied with the jurisdictional requirements of initiating and investigating its price-fixing complaint.

The company further said the price-fixing allegations are time-barred.

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The tribunal did not mention whether Durban-headquartered Corobrik is opposing the CompCom’s application.

The company has come under fire before for price fixing, along with five other companies in the brick and paving block manufacturing sector. In 2017, it was charged following a probe by the competition body.

In the current case, the tribunal said the main matter will only be heard after all the pre-trial proceedings have been concluded.