Arcelormittal has agreed to pay a fine of R1.5 billion to the Competition Commission after admitting to being involved in anti-competitive behavior through long steel and scrap metal cartels.
Commissioner of the Competition Commission, Thembinkosi Bonakele, says at least five investigative complaints were brought against the steel manufacturer dating back as far as 2003.
Bonakele explains that Arcelormittal's abuse of market dominance has had a massive impact on trade exports, the industrial sector and job creation downstream.
They had a buyers cartel were they essentially would get together with other buyers to decide the trading conditions, including the price.— Thembinkosi Bonakele, Commissioner of the Competition Commission
In addition to this, the manufacturer has has also set aside capital expenditure of R4.6 billion over five years to help ensure investment in the steel manufacturing industry.
It was very important for us to balance the fine with their ability to continue investing in the South African economy.— Thembinkosi Bonakele, Commissioner of the Competition Commission
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This article first appeared on 702 : Arcelormittal's cartel behaviour stifled SA industries