Mit­tal guilty of mo­nop­oly pric­ing

Finweek English Edition - - Main stories this week -


THE COM­PE­TI­TION TRI­BUNAL found Mit­tal Steel SA guilty of abus­ing its dom­i­nant mar­ket po­si­tion and charg­ing ex­ces­sive prices. The rul­ing could have wider mar­ket im­pli­ca­tions as the tri­bunal con­sid­ers the pos­si­bil­ity of struc­tural changes in the cur­rent pric­ing sys­tem. Mit­tal’s share price took a 2,3% knock on the day of the an­nounce­ment and the com­pany now faces a fine of up to R1,6bn. BUSI­NESS DAY re­flected on the pos­si­ble ef­fect of struc­tural changes in the steel pric­ing sys­tem on the mar­ket and the pos­si­bil­ity of break­ing up the Mac­steel/Mit­tal joint ven­ture. A Busi­ness Re­port colum­nist said: “Swanepoel is rev­el­ling in his im­age as the cham­pion of SA’s poor steel con­sumers but is only too aware that there may yet be a few more rounds left in this fight if Mit­tal takes the mat­ter on ap­peal.”


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