Azra Hoosen | ah@radioislam.co.za
21 February 2025 | 14:30 CAT
3 min read

After nearly a decade of legal battles, the Competition Commission has reached a settlement agreement with DH Brothers Industries (Pty) Ltd, trading as the Willowton Group, over allegations of price fixing in the edible oils and baking fats market. While the Commission has made no findings against Willowton, the company has agreed to a R1 million settlement and a R100 million public interest commitment over five years.

Speaking to Radio Islam, Siyabulela Makunga, spokesperson at the Competition Commission, provided insight into the case, whereby the Competition Commission initiated a complaint in 2016 regarding allegations of price-fixing and the fixing of trading conditions in the market for the supply of edible oils, including baking fats and margarine, in South Africa. This contravened Section 4(1)(b)(i) of the Competition Act. The allegations were pursued against Willowton Group as well as its associated companies, which included Wilmar, Continental Edible Oils and Africa Sun Oil Refineries.

According to the Commission, the case has been subject to prolonged litigation. “We have been in and out of courts, with the company trying every bit to make sure that this matter does not proceed,” he said. The litigation included applications against the Commission’s efforts to search for and seize evidence at the respondents’ premises.

The matter was pending before the North Gauteng High Court, which was set to hear the review application by Willowton Group and its associates. However, a settlement agreement has now been reached. The settlement includes a significant public interest commitment amounting to R100 million over five years.

“One of the things that we do in settling or finalising matters, whether through prosecution or settlements, is to make sure that we prevent any behavioural conduct that may compromise competition in the market. Consumers must have obviously suffered during the period of this conduct, which dates back as far back as 2007, according to the information we gathered. We then said it was important to look at how we can plough back to the consumer. There was no better way than investing in education and supporting those who are trying their best to help the need,” Makunga explained.

As part of the settlement, Willowton Group has agreed to establish a Bursary fund worth R20 million intended for students from historically disadvantaged backgrounds. “Sixty percent of the recipients of this fund must be female students. We are making a call to South Africans to be on the lookout for the adverts that will be issued within thirty days from the settlement date of this particular agreement,” he said.

Non-governmental organisations will also benefit from the settlement. The Competition Commission hopes that those who are going to benefit are organisations that are helping the needy. “R30 million has been set aside as part of this agreement for a period of five years to benefit non-governmental organisations that are eligible,” he said.

Additionally, R50 million has been allocated for local procurement from Level 1 BEE companies. “This will be done within a period of five years,” the Commission confirmed.

According to Makunga, the Commission has been monitoring undertakings and remedial actions, which include public interest commitments made through major control and acquisitions. “This is not new, and we are obviously going to be monitoring this. We will be receiving reports every three months to inform the Commission of the progress made in ensuring that all of these undertakings are not just lip service but actually reach the intended groups,” he added.

While the settlement has been reached with Willowton Group, the investigation into other companies involved in the case is still ongoing. “We are now faced with a situation where we are not at liberty to comment on the details of what information will be requested from those companies. However, it is information that is going to assist the investigation,” he said.

Makunga highlighted their expectation that some or all of the other companies will follow suit and come forward to settle with the Commission as it is in the interest of justice to not waste taxpayers’ money on lengthy litigations. “We must, where possible, look at other feasible ways of resolving matters for the benefit of the sector itself. We want to change behaviour, ensure that this conduct is not repeated, and create a conducive environment for the mainstream participation of those who are currently sitting in the periphery of our economy,” he said.

This case sends a strong message to businesses regarding compliance with South Africa’s competition laws. Makunga emphasised that this message is going out to everyone who may want to exploit consumers or undermine the laws that have been endorsed by Parliament to ensure fair competition in markets. “Consumers have got a choice, thereby contributing to the reduction of the cost of living, which is a major challenge we are faced with in South Africa,” he added.

The Commission encouraged public vigilance. “We ask communities and consumers to work with us by being actively involved and vigilant. Where they see that there is potential of an exploitation or uncompetitive behaviour, they must come forward and report it.”

For members of the public, complaints can be lodged on the Competition Commission SA website: https://www.compcom.co.za/

LISTEN to the full interview on The Daily Round Up with Ml Junaid Kharsany and Siyabulela Makunga, Spokesperson at the Competition Commission, here.