Your (un)fair advantage

Would you believe it? A bicycle cartel!
6/03/2009

The Competition Commission has announced that it has issued a summons against two bicycle retailers, Fritz Pienaar of Fritz Pienaar Cycles and Andrew Mclean of Cycle Lab.

According to the Competition Commission it is in possession of minutes of a meeting between the bicycle retailers evidencing an attempt to collusively increase margins on bicycles (35% - 50%) and bicycle accessories (50% - 75%).

The Competition Commission also indicated that it suspects that other retailers may be involved and that it is investigating the depth of the collusion.

Should the prosecution be successful members of the “bicycle cartel” could be faced with an administrative penalty of up to 10% of turnover in the preceding financial year.

The investigation comes on the eve of the Cape Argus Pick ’n Pay Cycle Tour, South Africa’s biggest cycling event, which attracts thousands of cyclists to the Mother City.

The investigation is proof that the Competition Commission’s focus is not only on large industries and that all businesses should therefore ensure compliance with the Competition Act.

Jac Marais
Senior Associate
jac-m@adamsadams.co.za
Adams & Adams
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In a judgment handed down on 29 November 2010 in the matter between the Minster of Trade and Industry v E L Enterprises (193/10) [2010], the Supreme Court of Appeal considered the correct procedure to be followed in applications to confirm the seizure without a warrant of suspected counterfeit goods.

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Partner (Head: Commercial Department)
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Tel: +27 (0) 12 432 6206
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Tel: +27 (0) 12 432 6356
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The firm practises directly in several Southern African countries and through long-established associates in others.