The Competition Commission on Thursday referred a complaint of anti-competitive behaviour against Sasol to the Competition Tribunal.
Profert Limited’s complaint against Sasol Chemical Industries was referred on the grounds that the latter was found to have contravened the Competition Act, commission spokesperson Liziwe Konyana said.
Profert lodged a complaint with the Competition Commission, alleging that Sasol was abusing its dominance in the market for the supply of LAN — a nitrogen-based fertiliser — by charging discriminatory prices and by refusing to supply Profert.
Sasol committed an exclusionary act by selling LAN to Yara SA on preferential terms.
”The commission has submitted that the conduct described above has had an anti-competitive effect in the market.”
Konyana said the commission has asked the tribunal to order Sasol to cease the conduct and to impose a penalty of up to 10% of the its turnover.
Ammonia is an essential ingredient in the manufacturing of LAN. Sasol accounts for more that 90% of ammonia production in South Africa, which is a by-product of its primary operations. Consequently Sasol is the only company that locally produces enough LAN to meet the demands from wholesalers, retailers and exporters. Sasol is active in all levels of the LAN supply chain. – Sapa