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What you need to know about the largest competition law fine in South Africa to date

Over the past 16 years there have been various competition law cases pending against Arcelor-Mittal (Mittal).

In order to bring these cases to finality, Mittal has reached a settlement agreement with the Competition Commission to pay an eye-watering and record-breaking R1.5billion fine (payable in annual installments over the next 5 years) for its involvement in cartel conduct.  The fine (together with other remedies) is significant and represents the largest fine paid by a single firm to date for anti-competitive conduct. Read more

What is collusion?

Any interaction between competitors, even if completely above board, will raise suspicion from competition authorities. Authorities are concerned that competitor interaction may lead to collusion that will be to the detriment of consumers.

Collusion refers to anti-competitive agreements or understandings amongst competitors to coordinate their conduct – for example agreeing to all sell at the same price or not to sell to certain customers. Instead of competing, competitors form a so-called cartel and behave like a single powerful supplier and this is almost always to the detriment of the consumer. Read more