The Competition Tribunal has confirmed, as an order, a settlement agreement in terms of which fast-moving consumer goods firm Unilever South Africa has agreed, among others, to pay a R16-million administrative penalty.
Unilever and Sime Darby Hudson Knight were accused by the Competition Commission of contravening Section 4(1)(b)(ii) of the Competition Act by engaging in market division in the edible fats and oils industry in South Africa between 2004 and about 2012. The commission alleged that Unilever and Sime Darby concluded a suite of agreements in terms of which, among others, Sime Darby was precluded from supplying products of a particular classification, pack size and format to specific customer channels.
The commission and Sime Darby concluded a settlement which was confirmed as an order of the tribunal in July 2016. While Unilever defended the allegations levelled against it by the commission, it has subsequently also negotiated a settlement with the commission.
The tribunal’s confirmation of the Unilever settlement agreement follows a hearing on 3 October 2023 during which the Tribunal exercised its inquisitorial powers to interrogate the terms of the agreement and heard submissions from both the commission and Unilever.
In terms of the settlement agreement, Unilever has agreed to pay the penalty, which was a negotiated figure between Unilever and the Commission, and not a penalty-imposed sum.
It has also committed to establishing and administering an enterprise supplier development fund valued at R40-million; increasing the aggregate yearly value of its local procurement of products and services from entities operating in South Africa by at least R340-million for four years; and donating R3-million worth of hygiene, disinfectant and oral products to public schools over a five-year period.