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Johannesburg – The competition tribunal on Wednesday confirmed the settlement agreements between the competition commission and scrap metal dealers.
Universal's penalty was adjusted from R15.5m to R18m after a previous calculation error.
The tribunal had on Wednesday heard proposed settlements that the commission concluded with Abbedac Metals cc, Universal Recycling Company and Amalgamated Scrap Metals Recycling respectively.
All three companies deal in scrap metal, which is used as an input in the manufacture of steel and steel products.
These settlements follow the commission's investigation into collusion in the scrap metal industry.
Through this investigation, which included a raid on the offices of several scrap metal dealers, the commission found that Abbedac, Universal, Amalgamated Metals and others had agreed on the prices at which they would buy different types of scrap metal.
During the commission's investigation, one of the respondents, Reclamation Group, approached it with a view to admitting the allegations against it and settling the case. The tribunal confirmed this settlement in May 2008.
The three companies have agreed to pay penalties of R4.9m, R18m and R3.2m respectively and to help the commission in its prosecution of other members in the scrap metal cartel.
