Transport firm’s fine for appeal

THE COMPETITION Commission would appeal the R450 000 fine imposed by the Competition Tribunal against furniture removal firm Stanley’s Removals, the tribunal said yesterday. This comes after the commission recommended that the fine imposed be higher than what the tribunal finally confirmed. In a statement yesterday, the tribunal explained that Stanley’s Removals was fined R450 000 for collusion by the tribunal. The fine was confirmed on December 12. In November 2010, the commission initiated an investigation into collusion in the furniture removal industry. The commission invited industry firms to settle instances of collusive conduct, and so far 16 had settled, the tribunal said. Among those implicated was Stanley’s, it said. The company was accused of engaging in cover pricing with Cape Express, and had admitted the offences. Stanley’s and the commission could not agree on the quantum of the penalty and the matter was brought to the tribunal, it said. The Competition Commission had recommended a fine of 10 percent of Stanley’s turnover per instance, for eight offences, but the tribunal in its reasons said it had reduced the fine to keep it in line with the settlement agreements of other furniture companies, such as Stanley’s co-accused Cape Express, which was fined R645 710 for 1 744 incidents. “The tribunal made it clear that though the settlements by consent orders did not create binding precedent in opposed matters, they could be used as a yardstick for setting an appropriate penalty.”