Mittal Steel SA, the South African unit of the world’s top steel-maker, on Wednesday said it would appeal against a ruling by the Competition Tribunal that it charged ”excessive prices”.
The tribunal ruled last month that Mittal SA, which is 52% owned by Arcelor Mittal, contravened a section of the Competition Act by ”charging an excessive price for its flat steel products to the detriment of consumers”.
The tribunal said that although it was empowered to penalise Mittal SA, it would postpone considering remedies against the company until it heard further evidence.
Shares in Mittal SA, traded 0,04% lower at R123,05, against a 0,53% fall in the blue chip Top-40 index at 8.25am GMT.
Mittal SA announced it would contest the ruling when it met the tribunal to set a timetable and scope for hearings regarding further evidence in connection with the extent of the administrative penalty, if any, to be imposed on the firm.
Gold miners Harmony Gold and DRDGOLD lodged the complaints of excessive pricing with the tribunal in 2004, claiming that Mittal SA was contravening competition law and abusing its market dominance by over-charging for steel products in the domestic market. – Reuters