South Africa: Settlement reached in bicycle cartel

Four the 20 bicycle retailers and wholesalers implicated in a price-fixing scandal appeared before the Competition Tribunal on Wednesday. This was in the expectation that the tribunal would approve the terms of a settlement agreement reached with the Competition Commission.

Melody Street 18, Pedal-On Marketing (trading as Maverick Cycles), Albatros Fishing and Cycling, and Maillot Jaune Trading have admitted to colluding with others in 2008 to set the wholesale and retail prices of bicycles and cycling equipment.

They have agreed to co-operate in the prosecution of others involved in the cartel.

The companies had also agreed to stop discounting and ask wholesalers to advertise higher recommended retail prices. An anonymous source leaked the minutes of the meeting to the commission, prompting the investigation.

Despite proof of this far-reaching cartel, industry insiders spoken to pleaded ignorance of the existence of price-fixing in the sport.

Full content: Business Report

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