The competition appeal court has found that a blanket manufacturer that won a lucrative government tender did not collude with a supplier on price-fixing.
In December 2020, the Competition Tribunal found Aranda Textile Mills Ltd and blanket reseller Mzansi Blanket Supplies Ltd were guilty of price-fixing and collusive tendering in relation to a 2015 National Treasury tender.
The tribunal said Aranda and Mzansi both submitted bids for the tender, but already had a “close commercial relationship”.In its judgment, the appeal court said there was no evidence to suggest that despite Aranda giving Mzansi a good price it made a loss. “In the absence of a proper analysis, this fact of alleged price discrimination found by the tribunal is wrong.”
“A substantive problem facing the commission is that it based its argument on the communication between parties in a vertical relationship without proving this to be improper, and simply argued that it was a horizontal relationship because both of them tendered on the same tender and this necessarily restrains competition,” the court found.
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