Glass cartel: settlement agreement reached

The case against three other members of the cartel - that existed between 1995 and 2007 - have been referred to the Competition Tribunal for a hearing.

The commission's investigation‚ which started in 2010‚ showed that Glass South Africa‚ National Glass‚ Northern Hardware and Glass‚ Furman Glass‚ McCoy's Glass and AF-FSL Glass fixed minimum selling prices.

They also fixed the percentage by which minimum prices would increase and the date for the implementation of the fixed prices.

The cartel allegedly operated in Gauteng‚ the Free State and the Western Cape.

The products involved included float glass, used to make window panes‚ laminated glass - a type of safety glass used in automobile windshields and skylight glazing‚ and toughened glass, which crumbles into granular chunks and is used in passenger vehicle windows‚ shower doors‚ refrigerator trays and various types of plates and cookware.

According to the information supplied to the commission‚ cartel meetings took place in hotels‚ pubs and even on boat trips to Zimbabwe to fix prices‚ share markets and fix trading conditions among cartel members.

The commission's investigation showed that cartel members also agreed in 2005 to introduce a distribution or transport levy of 3% of the price charged to customers.

Af-FSL Glass was granted immunity from prosecution after approaching the commission in 2009 with information regarding the activities of the cartel.

Glass SA has admitted to its conduct and agreed to pay an administrative penalty of R4.4m while National Glass will pay R414‚615. They agreed to co-operate with the commission in its case against Northern Hardware and Glass‚ Furman Glass and McCoy's Glass.

The tribunal is yet to set a date for the hearings.