Sports Minister Fikile Mbalula on Thursday welcomed the Competition Appeals Court dismissal of an appeal by two bicycle wholesalers against a Competition Tribunal decision that the two companies had engaged in price fixing.
The Competition Appeals Court upheld that Ominco and Coolheat, along with 20 retailers, contravened the Competition Act when they colluded to fix bicycle prices.
The case dates back to 2008 when about 20 bicycle retailers and wholesalers were found to have held a meeting and agreed to fix prices.
After the Competition Tribunal found the wholesalers guilty, it imposed administrative penalties of R4.6 million and R4.3 million on the two companies respectively.
In a statement, Mbalula said this was a victory for all cyclists as collusion and price fixing closed participating opportunities for underprivileged groups, thereby preventing transformation in sports.
“This judgement is a victory for all cyclists and sends a strong message to all those in the sport economy. This not just a case of mere collusion but corruption,” Mbalula said.
“When retailers unfairly increase prices of sport equipment we must equally be appalled as they hinder our efforts to make sport inclusive and accessible. Corruption in both government and the private sector must be rooted out.”
Mbalula reiterated that full realisation of transformation in sport would happen when both the private and public sector were equally committed in making sport accessible and inclusive.
– Africa News Agency (ANA)
