The Competition Tribunal on Tuesday announced that it has issued orders against Omnico and Coolheat Cycle.
“It [Tribunal] has awarded an administrative penalty to Omnico of R4‚627‚412 and to Coolheat Cycles a penalty of R4‚250‚612‚” said Lerato Motaung‚ the Tribunal’s Registrar.
The Tribunal has already confirmed six consent orders by wholesalers and 11 retailers in the bicycle sector who were also implicated in a price-fixing investigation by the Competition Commission‚ Motaung said.
The Commission’s case hinged on a meeting in September 2008‚ which about 200 bicycle wholesalers and retailers attended to discuss increasing their mark-up on bicycles to 50% from 35%‚ and the mark-up on cycling accessories to 75% from 50%.
“The wholesalers would give the retailers a higher mark-up by increasing the Recommended Retail Price to consumers. Prices to consumers would be increased so that retailers could make higher margins.
“Prices were set to increase on 1 October 2008‚ as it was the beginning of the new cycling season and new bicycles and accessories were usually launched at this time and new price lists issued‚” said Motaung.
Both Omnico and Coolheat had attended the September meeting and agreement was reached to increase the mark-up on wholesale prices for bicycles and cycling accessories in co-ordination.
Full Content: Business Day
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
University of Kentucky Eyes Structural Shift Amid Antitrust Pressures
Apr 24, 2025 by
CPI
Opt-Out Flops Out At WIPO Meeting on AI and IP
Apr 24, 2025 by
CPI
Belgian Watchdog Fines Pharma Giants Over Anti-Competitive Practices in Pharmacies
Apr 24, 2025 by
CPI
X Sues Minnesota Over Law Banning AI Deepfakes in Elections
Apr 24, 2025 by
CPI
Twelve States Sue Trump Over Tariff Policy, Citing Overreach of Executive Power
Apr 24, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Mergers in Digital Markets
Apr 21, 2025 by
CPI
Catching a Killer? Six “Genetic Markers” to Assess Nascent Competitor Acquisitions
Apr 21, 2025 by
John Taladay & Christine Ryu-Naya
Digital Decoded: Is There More Scope for Digital Mergers In 2025?
Apr 21, 2025 by
Colin Raftery, Michele Davis, Sarah Jensen & Martin Dickson
AI In the Mix – An Ever-Evolving Approach to Jurisdiction Over Digital Mergers in Europe
Apr 21, 2025 by
Ingrid Vandenborre & Ketevan Zukakishvili
Antitrust Enforcement Errors Due to a Failure to Understand Organizational Capabilities and Dynamic Competition
Apr 21, 2025 by
Magdalena Kuyterink & David J. Teece