Materials & Equipment News South Africa

CPHA faces charges of price fixing

The Competition Commission has filed charges with the Competition Tribunal against the Contractors Plant Hire Association (CPHA), and 22 of its members, for fixing rental rates for earthmoving machinery and plant equipment.
Source: ©Sergei Butorin
Source: ©Sergei Butorin

On 21 February 2017, the competition commissioner initiated a complaint against CPHA and its members in terms of section 49(B)(1) of the Act for alleged price fixing and/or fixing of a trading condition when renting out their earthmoving machinery, in contravention of section 4(1)(b)(i) of the Act.

The commission’s investigation found that as far back as 1970 to date, members of the CPHA agreed under the auspices CPHA to fix the minimum hourly and daily rate charged for the rental of their machinery and plant equipment and/or fixed trading conditions relating to the renting of their machinery and plant equipment. This conduct amount to price fixing and/or fixing of the trading condition.

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