Saint-Gobain
The Competition Commission says a complaint against construction products company will be the first to be prosecuted for price discrimination under new provisions in the Competition Act.
Spokesperson, Sipho Ngwema, says the complaint against Saint-Gobain Construction Products South Africa was referred to the Competition Tribunal following a complaint from a Gqeberha hardware store, PE African Brick Centre.
"Saint-Gobain is believed to have sold cretestone to the complainant at prices which are 20% higher than those of other larger hardware stores located in the same region," he said.
He said Saint-Gobain is a supplier of various construction products including a natural gypsum-based plaster, crestone, which is used to plaster walls.
"This is the first complaint referred by the Commission to the Tribunal for prosecution under the new price discrimination provisions of the Competition Act.
"These provisions aim to protect SMEs and companies owned by historically disadvantaged individuals (HDIs) against price discrimination by dominant suppliers," Ngwema said.
He said the Competition Commission alleges that Saint-Gobain is a dominant supplier of natural gypsum-based plaster in the Eastern Cape.
"The Commission seeks a finding that Saint-Gobain's conduct of price discrimination contravenes the Competition Act and that the company is liable for the payment of an administrative penalty equal to 10% of its annual turnover in South Africa".
