Saol's controversial import parity pricing policy will remain under the spotlight following the Competition Commission's decision to appeal against the recent Competition Appeal Court (CAC) ruling on the matter. Last month, the court ruled that the petrochemical giant had not been charging excessive prices for its propylene and polypropylene, which are used in food packaging, between 2004 and 2007.Competition commissioner Thembinkosi Bonakele confirmed that the authority "will definitely be appealing or reviewing the CAC ruling".The appeal will be heard before the Constitutional Court.story_article_left1Bonakele said it was not yet possible to give details of the basis for the appeal or review, as they were being finalised. "Our notice of appeal will give more details," he said.Norbert Behrens, senior vice-president for strategic projects at Sasol, said: "We have not been notified of the Competition Commission's decision to appeal the Competition Appeal Court's ruling. However, should we receive formal notification, we will consider our approach."The decision by the CAC was regarded as a setback for both the Department of Economic Development and the Department of Trade and Industry, which were relying on the competition authorities to put the lid on the controversial import parity pricing practices of privatised former parastatals such as Sasol and ArcelorMittal SA (previously Iscor).Trade and industry had lodged the complaint against Sasol's pricing practices in 2007. Last year, Lionel October, director-general of the department, said many South African manufacturers were uncompetitive because key inputs were charged at import parity pricing levels.Chances of a successful appeal would be very difficult, said a competition law expert. "The CAC came to its decision on the basis of very specific facts, which in turn were based on an interpretation of technical accounting policies."If the commission challenges the decision, it will have to trawl through the huge amount of detail involved and present an alternative interpretation to the Constitutional Court."It's so fact-specific the Constitutional Court won't want to hear it," said the expert.If the Constitutional Court does not accept the commission's appeal, or rules against it, the competition authorities in effect lose jurisdiction over import parity pricing and the problem will have to be resolved elsewhere.The proposed appeal to the court may be seen as a necessary step towards the government's acceptance that the matter can only be dealt with through industrial policy...