The Competition Commission welcomes the recent settlement between Premier Foods‚ civil society organisations and consumers in the bread cartel saga‚ it said on Thursday.
The Black Sash Trust‚ the Congress of South African Trade Unions‚ the Children’s Resources Centre‚ the National Consumer Forum and others last week dropped a Constitutional Court case against Premier Foods as part of the agreement.
The organisations and consumers were effectively asking the Constitutional Court for permission to sue Premier Foods for its role in the 2006 Western Cape bread cartel‚ with Tiger Brands and Pioneer Foods.
They were challenging a Supreme Court of Appeal ruling which set aside a Competition Tribunal declaration that opened Premier Foods up to lawsuits.
“This settlement brings to an end the longstanding civil claim brought by the victims of the bread cartel for damages suffered as a result of Premier Foods’ participation in the bread cartel.
“The bread cartel was the lowest point in the history of collusion in South Africa. We congratulate and commend civil society organisations and Premier Foods for bringing finality to this ugly side of corporate behaviour. We hope this settlement will pave way for the other respondents to do the right thing‚" said commissioner Tembinkosi Bonakele.
Lawyer Charles Abrahams‚ for the organisations and consumers‚ said that the application for damages against cartelists Pioneer Foods and Tiger Brands will continue in the Western Cape High Court.
"We are liaising with the lawyers of the two companies to obtain suitable dates so that the matter can be heard‚" he said.
