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Commission drops appeal in dairy case

Johannesburg - The competition commission on Monday withdrew an application to the Constitutional Court for leave to appeal a decision relating to alleged anticompetitive behaviour in the dairy industry.

"The competition commission has today filed a notice to withdraw its application to the Constitutional Court for leave to appeal the decision of the Supreme Court of Appeal (SCA) in the Woodlands case," it said in a statement.

"The commission has considered the implication of the SCA decisions on its operations, and has after obtaining legal advice, concluded that the ruling will not hamper its ability to initiate, investigate and prosecute contraventions of the Competition Act."

The SCA held that complaints about the alleged anticompetitive behaviour of milk producers Woodlands and Milkwood were the consequence of an invalid complaints procedure.

This meant the commission had acted beyond its powers in going ahead with its investigation.

The investigation into alleged anticompetitive behaviour in the milk industry began in February 2005.

The commission alleged that Clover Industries, Clover SA, Parmalat, Ladismith Cheese, Woodlands Dairy, Lancewood, Nestlé SA and Milkwood Dairy were engaging in prohibited practices in contravention of the Competition Act.

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