Mittal Steel South Africa will have to fork out close to R700-million after it was fined on Thursday by the Competition Tribunal for price-fixing.
A statement released by the tribunal said that it had fined Mittal R691,8-million and imposed ”behavioural remedies” on the company in terms of the Competition Act.
The steel maker sold steel at reduced prices, but contractual limitations it placed on its buyers prevented them from passing on those reduced prices.
The tribunal said: ”Price-fixing through the manipulation of supply is without doubt the most egregious contravention of competition law and principles.
”This causes considerable damage to customers of the affected products and to the structure and fabric of the economy.”
The fine represented 5,5% of Mittal’s total turnover of R12,7-billion earned on flat steel in both the local and export market during 2003.
In terms of the Competition Act, the tribunal was empowered to impose a penalty of up to 10% of a firm’s annual turnover.
The tribunal also ruled that Mittal South Africa could not, amongst other things, impose upon any customer of its flat steel products any conditions in respect of those customers’ use or resale of those products.
The tribunal also ordered Mittal South Africa to make known in the public domain at all times its list prices, rebates, discounts and other standard items of sale for flat steel products. — Sapa