Linpac probed by antitrust watchdog

THE COMPETITION Tribunal has given food packaging supplier Linpac Plastics five business days to hand over documents relating to the group’s anti-trust policies and any other relevant documentation pertaining to the group’s alleged cartel involvement in South Africa from 1998 to 2007.

The matter before the tribunal stems from a case brought to the Western Cape High Court, in which Linpac Plastics sought damages against two former directors, Jacobus Du Plessis and Judex Burnett, for breaching a restraint of trade by forming a rival company, Lion Packaging.

“In the High Court matter, Du Plessis and Burnett raised a defence against the quantum of damages sought by Linpac, stating that such was unduly tainted by the anti-competitive practices Linpac was involved (in) during the relevant period of time,” the tribunal said yesterday. “Du Plessis and Burnett allege that they have first-hand knowledge of such practices in that they acted upon the instruction, consent and knowledge of Linpac when they partook in anti-competitive practices. Given that the tribunal has original jurisdiction in the determination of competition law matters, the High Court referred the matter to the tribunal to determine whether or not such alleged anti-competitive practices took place.”

In the application for further and better discovery, Du Plessis and Burnett sought to obtain documents and communication exchanged between the Linpac group and five subsidiaries implicated in cartel activities in the EU.

It was the applicants’ contention that within such documentation lay indications of cartel like behavior in Linpac’s South African subsidiary.

The tribunal has ordered that Linpac hand over its divisional standing orders and antitrust policies, particularly those between 2002 and 2008.

It also ordered the discovery of any correspondence between Linpac and Du Plessis and Burnett that had relevance to the matter against them.