New Era agrees to pay R21m penalty related to allegations of price fixing

JOHANNESBURG - Packaging company, New Era, has agreed to pay a R21 million administrative penalty on the back of allegations of price fixing, market division and collusive tendering, according to the Competition Commission.

The agreement comes without the company admitting to any liability on its part.

The commission said it had now referred the agreement to the Competition Tribunal, to be made an order.

This follows investigations into two complaints dating back to 2016 and 2017 respectively, centring on alleged agreements between New Era and Mpact around competing for specific customers and the purchase of materials.

The commission’s Siyabulela Makunga: "New Era has since settled with the commission and agreed to pay an administrative penalty of R21.2 million, while Mpact has successfully sought immunisation from prosecution in exchange for its cooperation with the commission’s investigation."