Firm fined R2m for collusion
Company divided fire control market
A FIRE control and protection systems company has been penalised R2 million after admitting to cartel conduct.
The Competition Tribunal yesterday said Fireco (Pty) Ltd and Fireco Gauteng had in 2012 to 2015 concluded an agreement to divide markets in the supply, installation and maintenance of fire control and protection systems. In terms of that collusive agreement, Fireco and Fireco Gauteng agreed to divide markets by allocating customers, territories and specific types of services among themselves.
The agreement also stated that Fireco would not offer its services in Gauteng and Fireco Gauteng would not offer its services in the Western Cape. Fireco would pass on all special risk work throughout the country to Fireco Gauteng, the Competition Commission said.
“On March 13, 2015, the commission initiated a complaint against Afrion Property Services CC, Belfa Fire, Cross Fire Management, Fire Protection Systems, Fireco, Fire Control Systems, QD Air, and Technological Fire Innovations (Pty) Ltd for allegedly fixing prices, dividing markets and tendering collusively in the market for the supply, installation and maintenance of fire control and protection systems. In June 2015, the commissioner amended the initiation complaint to include Fireco Gauteng, QD Fire and Keren Kula Mechanical as additional respondents,” the commission said.
“In terms of the agreement, Fireco has undertaken to pay an administrative penalty of R2.2m,” the commission said yesterday.
Meanwhile, a sports agency representing players and coaches in the Premier Soccer League (PSL) has been fined R90 000 for price fixing of commission fees. The Competition Tribunal yesterday confirmed a consent agreement concluded with Bidvest Media, trading as MSC Sports.
“MSC Sports has agreed to pay a fine of R90 013 after it pleaded guilty to charges of fixing the price of commission fees and fixing trading condition,” the commission said.
MSC Sports, the SA Football Intermediaries Association (Safia), and 35 other football intermediaries were referred to the tribunal for prosecution last September.
The investigation found the following, among others:
● Safia and its members agreed to charge soccer players and coaches a standard 10% commission fee when negotiating transfer fees and contracts on their behalf;
● They charge football players a standard 20% commission fee when negotiating commercial contracts; and
● They use Safia as a platform for collusion.
“In its settlement agreement with the commission, MSC Sports has undertaken to co-operate fully in the prosecution of the other accused companies. This includes testifying before the tribunal, providing evidence and agreeing to refrain from engaging in cartel conduct,” the commission said.