Tribunal to hear Pioneer case

Johannesburg - The Competition Tribunal will hear a price-fixing complaint against Pioneer Foods next week, it said on Thursday.

The Competition Commission brought the complaint against Pioneer Foods, alleging that it was part of a bread cartel involved in price fixing.

The cartel allegedly fixed the date of implementation of price increases and divided markets in contravention of the Competition Act.

The commission has asked the tribunal for an order declaring that Pioneer had entered into an agreement or engaged in a concerted practice that involved the direct or indirect fixing of a selling price.

The commission also wants an order from the tribunal that directs Pioneer to desist from such conduct as well as the levy of a penalty on the bread manufacturer.

Administrative penalty

The commission has requested the imposition of an administrative penalty on Pioneer of 10% of its annual turnover for the 2006/2007 financial year.

Also, it requested a further penalty of 10% of its annual turnover for the 2006 financial year for its bread operations in the Western Cape.

The hearings will take place from June 17 to June 30.

The commission also received complaints against Tiger Brands and Foodcorp concerning the operation of a bread cartel.

Tiger Brands, however, settled the case with the commission and paid a penalty of R98m.

Foodcorp paid a penalty of R45m.

Pioneer has denied that it was involved in the operation of a bread cartel.

- Sapa