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Johannesburg - Retailer Woolworths on Wednesday said that it welcomed the investigation initiated by the Competition Commission.
"We welcome this investigation and will cooperate fully," said Simon Susman, chief executive of Woolworths.
Susman said the retail industry in South Africa and around the world was fiercely competitive.
"As far as we understand, this investigation is not about price fixing. It is about testing pro-competitive and anti-competitive effects of certain practices.
"We are at pains to ensure that our practices drive the best prices for our quality standards, and do not have an anti-competitive effect," said Susman.
On Monday, the Competition Commission said it had initiated an
investigation against major South African supermarket chains, Pick n Pay, Shoprite/Checkers, Woolworths and Spar (which together comprise more than 60% of the market by turnover), as well as the major wholesaler-retailers, Massmart and Metcash for alleged contraventions sections 4(1)(a), 5(1) and
8(c) of the Competition Act.
The investigation has been prompted by concerns raised by various stakeholders and the public in general. Concerns raised fall within the food and agro-processing sector, which has been identified as a priority by the Commission.
"The commission has made several interventions along the food value chain, from production through to processing. This complaint initiation now aims to uncover if there are any possible competition concerns arising in the retail space, where consumers would most directly be impacted," explained Commissioner Shan Ramburuth.
- I-Net Bridge