In a landmark resolution marking the end of an eight-year protracted legal battle, the Competition Tribunal has confirmed a R101-million settlement agreement with Willowton Group, the owner of the Sunfoil cooking oil brand.
The settlement stems from an investigation that commenced in 2016, targeting the company behind well-known brands such as Romi, D’lite, and Sunshine D. This inquiry scrutinised allegations of collusion with other edible oil producers to manipulate prices. The implicated companies include Wilmar Continental Edible Oils and Fats (Pty) Ltd, FR Waring Holdings (Pty) Ltd, Africa Sun Oil Refineries (Pty) Ltd, Epic Foods (Pty) Ltd, Sea Lake Investments (Pty) Ltd, and Unity Food Products (Pty) Ltd.
Investigations are still ongoing against the other companies except for FR Waring Holdings (Pty) Ltd.
A Decade of Alleged Price Fixing
The companies allegedly coordinated price increases for edible oils, including baking fats and margarine, and synchronised the timing of such increases. This conduct reportedly dates back as far as 2007.
Under the terms of the agreement, Willowton Group will pay R1 million as part of the settlement, in addition to a commitment of R100 million allocated for public interest initiatives over the next five years. This includes a R20 million bursary fund during the same period.
Social Upliftment Through Economic Contributions
The settlement outlines significant commitments aimed at social development. A total of R30 million will be dedicated to food and grocery donations over five years to support registered non-governmental and non-profit organisations catering to historically disadvantaged communities.
“Non-governmental and non-profit organisations will be able to find information on how to submit applications for the donation in a national newspaper, electronic media, or social media platform within the next 30 days,” read the statement.
Furthermore, the agreement includes procurement commitments favoring empowered service providers, addressing the critical need for economic inclusivity.
Litigation and Legal Proceedings
While the prolonged litigation strained resources and incurred costs for both sides, the Competition Commission deemed the settlement a pragmatic approach to conclude the drawn-out case.
In reaching this agreement, Willowton Group withdrew its review application in the North Gauteng High Court in Pretoria, where the company sought to overturn the Commission’s warrant to search and seize evidence from its premises.
The review application was still pending when the Commission and the Willowton Group finalized the settlement, bringing an end to the case.
