Tribunal finds furniture removal company engaged in limited instances of cover quoting
The Competition Tribunal has found that a moving company had engaged in limited instances of cover quoting, following a complaint referral by the Competition Commission.
Cover quoting is a practice whereby one or more firms agree that they will submit quotes in such a way that the designated winner will submit the lowest or most favourable quote and the other firms will submit artificially high quotes so as not to win the contract, the tribunal explains.
While the commission referred 23 alleged instances of cover quoting against the company, the tribunal found sufficient evidence to sustain only seven instances.
Central to the tribunal’s findings was the evidence of a former senior employee, who held managerial roles in both Pretoria and Johannesburg, who admitted to participating in cover quoting arrangements with a competitor in four instances.
These instances, between October 2008 and January 2010, involved the submission of cover quotes for the relocation of South African National Defence Force personnel and a Department of Health employee.
The tribunal, in its decision, noted the broader context of widespread cover quoting practices that existed in the furniture removal industry.
Other companies had been found to have participated in hundreds to thousands of cover quoting instances.
A pre-hearing will be convened in relation to remedies to discuss further submissions to be made by the parties.
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