Today's Big Stories

Six shipping companies probed for price fixing

The Competition Commission is currently conducting an investigation into six shipping companies based in the Western Cape and KwaZulu-Natal for allegations of price fixing.

The commission received a tip off from members of the public who discovered that these companies have fixed prices for shipment of cargo from Asia to South Africa.

Itumeleng Lesofe, commission spokesperson says in terms of the Competition Act, companies who are competitors are prohibited from having an agreement on prices or setting prices jointly.

Companies are expected to set prices independently...

Itumeleng Lesofe, spokesperson of the Commission

Lesofe says when companies agree on prices, it wont be for the benefit of consumers instead they make consumers pay inflated prices.

The commission says it will seize documents and electronic data from the premises of six firms including Maersk South Africa and the Mediterranean Shipping Company.

The information seems to suggest that these companies come together and agree on the level of increases and announce the they increase prices at the same time.

Itumeleng Lesofe, spokesperson of the Commission

In terms of the leniency programme, any member of the cartel who comes forth with information in exchange for immunity, the commission will consider that firm and grant them immunity form persecution.

Itumeleng Lesofe, spokesperson of the Commission

Listen to the full conversation below:


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