The Competition Tribunal on Monday confirmed the consent order agreement between the Competition Commission and respondents Adcock Ingram Critical Care, Dismed Criticare, Thusanong Healthcare and Tiger Brands.
Last month Adcock Ingram, owned by Tiger brands, admitted liability for colluding on prices and agreed to pay an administrative penalty of R53,5-million.
The amount represents 8% of Adcock Ingram’s turnover for the financial year ending in 2007.
”Adcock Ingram has undertaken to pay this within 30 days of the confirmation of the consent order by the Tribunal,” it said in a statement.
The fine is related to a cartel operating in the medical market for the supply of intravenous medical products to hospitals.
Adcock Ingram Critical Care colluded with other medical suppliers and discussed and agreed on prices prior to the submission of their respective tenders to hospitals, the commission set out.
The tribunal said no relief was sought against Tiger Brands as it was joined to the proceedings as the parent company of Adcock Ingram Critical Care.
”Adcock Ingram has also undertaken to assist the commission in prosecuting the other respondents in the complaint referral before the tribunal,” said the tribunal. — Sapa