PPC - January 2019

This month has seen South Africa’s Competition Tribunal once again turn its attention to alleged cartel activity in the cement industry.

The Competition Commission previously argued in 2008 that PPC, AfriSam, Lafarge and Natal Portland Cement (NPC) were involved in a market-sharing arrangement in the late 1990s. PPC was granted conditional immunity from prosecution in exchange for complete disclosure of all cartel activity between itself and its competitors. AfriSam and Lafarge paid fines in settlement. To date, NPC has denied all allegations of collusion.

With hearings into the case now resumed, the Commission is reportedly seeking a maximum penalty of 10 per cent of NPC’s annual turnover for its contravention of the Competition Act. The tribunal’s decision is expected by June this year.