Competition tribunal dismisses cartel case against I&J

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Processed frozen food manufacturer Irvin & Johnson (I&J) has come out victorious in a case where they were accused of cartel conduct by the Competition Commission in 2017.

The commission alleged that I&J and beef processing company Karan Beef had participated in a cartel to divide markets, by entering into a manufacturing agreement in 2000 and a subsequent amended agreement in 2002, in contravention of the Competition Act.

Karan Beef agreed to pay an administrative fine of R2.7m while I&J denied the allegations and opted to take the matter to the Competition Tribunal for litigation. The commission had accused I&J and Karan Beef of allegedly dividing markets in the supply of processed beef products such as beef burger patties, steak sizzlers, crumbed beef steaklets, viennas and boerewors.

The tribunal dismissed the case due to lack of evidence and said the burden of proof lay with the commission. “No evidence was put up by the commission that the agreements impacted adversely on competition in any segment of the market, such as increased prices to customers or improved volumes for I&J-owned brands,” the tribunal said in its finding.

 

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