Competition Commission initiates complaint against Parmalat

The Competition Commission approved at a meeting held on 25 November 2014 that the Commissioner initiates a formal complaint against Parmalat SA (Pty) Ltd for alleged abuse of dominance. The initiation arises from information obtained during the investigation of exemption applications filed by the Southern Africa Milk Co-operative Limited (Samilco) on behalf of its members. Through the exemption applications, Samilco seeks to be exempted from certain provisions of Chapter 2 of the Act.

Information obtained by the Commission during the course of its assessment of Samilco’s exemption applications revealed that Parmalat operates a bonus scheme which it uses to reward milk farmers for the continuous supply of raw milk in the Western and Eastern Cape Provinces.

The Commission is of the view that the alleged conduct by Parmalat may: (i) amount to an exclusionary act which has anti-competitive effects in contravention of section 8(c) of the Act; and (ii) have the effect of inducing a supplier not to deal with a competitor, in contravention of section 8(d)(i) of the Act. To read more click HERE.