Thursday, February 25, 2010

Bread price fixing fine could soar

By Khanyisa Tabata
25 February 2010


The Competition Commission has lodged an appeal against the Competition Tribunal’s ruling on the penalty imposed on Pioneer Foods for its involvement in the bread cartel.

It is unhappy that the Tribunal’s penalty of 10-percent was imposed on the company’s baking division’s turnover for 2006, rather than its group turnover.

Should the penalty be calculated on the group turnover, it will increase from just under 200-million-Rands to approximately one-and-a-half-billion-Rands.

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