Are
there lawbreakers in your portfolio? - 29 June
Shareholders of JSE-listed companies will be excused for wondering
if they're any sectors of the economy that aren't in danger of
contravening competition law. This comes after the Competition
Commission announced that it was investigating major retailers
Pick n Pay, Shoprite, Massmart, Woolworths and Spar over concerns
about possible anti-competitive behaviour. And it comes in the
wake of concerns of competition failure in industries as diverse
as cement, steel and food producers, bicycle retailers and banks.
When the managers of a company contravene company law, it is their
employers (shareholders) who are punished. The company can be
fined as much as 10% of annual turnover, which could be a nasty
shock for a shareholder in a retailer with profit margins of less
than 5%. - Moneyweb
website
Supermarkets
to be probed - 29 June
The Competition Commission has initiated an investigation into
major South African supermarket chains for possible contraventions
of the Competition Act, it said.
These chains included Pick n Pay, Shoprite-Checkers, Woolworths
and Spar, the commission said in a statement. Together, these
groups comprised more than 60 percent of the market by turnover,
the statement said. The commission would also investigate the
major wholesaler-retailers, Massmart and Metcash, for alleged
contraventions of sections 4(1)(a), 5(1) and 8(c) of the
Competition Act. According to the commission, the investigation
had been prompted by concerns raised by various stakeholders and
the public in general. - The
Times website
SA
retailers under investigation - 29 June
South Africa's Competition Commission is investigating major
supermarkets over possible antitrust breaches, hitting retail
stocks and raising concern about more aggressive regulation under
the new government. Shares in Pick 'n Pay slid 1.8 percent after
the news. Massmart dipped 0.24 percent, Woolworths edged up 0.40
percent, Spar dropped 2 percent and Shoprite, widely seen as the
cheapest grocer in South Africa, rose 0.57 percent. One economist
said the move was not only important for food prices - a key
driver of inflation in Africa's biggest economy - but could also
signal a more aggressive approach to regulation by the new
government. - Moneyweb
website
'Pick
'n Pay fights price-fixing' - 29 June
Pick 'n Pay has consistently fought price-fixing, the listed
supermarket chain said on Monday. "We welcome any
investigation or enquiry and will co-operate fully with the
commission," company CEO Nick Badminton said in a statement.
"Our record stands as a competitor that has consistently
fought anti-competitive practices, price-fixing and
collusion". - IOL
website
Shoprite
welcomes probe - 29 June
Shoprite-Checkers on Monday welcomed an investigation by the
Competition Commission into SA supermarkets. "I have already
stated four weeks ago that the Shoprite group would welcome an
investigation in this regard by the minister of agriculture so
that all stakeholders, especially consumers, will have a clear
picture of the situation," chief executive officer Whitey
Basson said in a statement. - IOL
website
Spar
blasts commission's probe - 29 June
Supermarket group Spar has "nothing to hide", it said on
Monday. Group marketing director of Spar, Roelf Venter, told Sapa
the company welcomed the commission's investigation. "Retail
is the most competitive sector in South Africa so let the
commission get this on the table for once and for all. Spar does
not sit around tables with other retailers in discussions",
Venter added. He criticised the commission's mention of long-term
lease arrangements. - IOL
website
Farmers
welcome commission's probe - 30 June
Farmers say it is high time supermarkets are investigated for its
role in inflated food prices. While the prices farmers get for
their products plummet, the costs of basic foods continue to rise,
several agriculture representatives said. - IOL
website
Supermarket
probe will address public concern - 1 July
The Competition Commission's recently announced investigation into
supermarkets is not about price-fixing. Simon Susman, chief
executive of Woolworths, said in a statement late on Tuesday that
the commission's investigation was about "testing
pro-competitive and anti-competitive effects of certain
practices". - IOL
website