The Competition Commission of South Africa has concluded a long-standing legal dispute with DH Brothers Industries (Pty) Ltd, trading as the Willowton Group, over allegations of price fixing in the edible oils and baking fats sector.
The Competition Tribunal confirmed the settlement agreement on 17 February 2025, effectively bringing an end to nine years of litigation between the Commission and the company.
Background and Allegations
The dispute originated in December 2016 when the Commission initiated an investigation against Willowton Group, along with six other edible oil suppliers, namely 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. The investigation focused on allegations of price fixing and collusion in the pricing and trading conditions of edible oils, margarine, and baking fats, in violation of Section 4(1)(b)(i) of the Competition Act 89 of 1998.
The Commission alleged that the Respondents had coordinated price increases and the timing of these increases, a practice believed to have been in place since 2007. However, no findings of wrongdoing were made against the Willowton Group.
Settlement Terms
As part of the settlement agreement, Willowton Group has agreed to pay a financial settlement of ZAR 1 million (approximately GBP 42,800), without admitting liability. In addition, the company has committed ZAR 100 million (GBP 4.2 million) over the next five years toward public interest initiatives, which include:
- Bursary Fund: ZAR 20 million (GBP 856,000) allocated for tertiary education scholarships for historically disadvantaged persons (HDPs) from underprivileged schools. At least 60% of the bursary recipients will be female students. The company will advertise the bursary details through national newspapers, electronic media, and social platforms, inviting applications within 30 days.
- Food and Grocery Donations: ZAR 30 million (GBP 1.2 million) in food and grocery contributions to registered non-governmental and non-profit organizations catering to HDPs. Details regarding application procedures for these donations will be published through various media channels.
- Procurement Commitment: ZAR 50 million (GBP 2.1 million) allocated for sourcing products and services from Level 1 Broad-Based Black Economic Empowerment (B-BBEE) service providers over the next five years.
Furthermore, Willowton Group has agreed to withdraw its review application in the North Gauteng High Court, with both parties bearing their own legal costs.
Ongoing Investigations
While the settlement marks the resolution of the case against Willowton Group, the Competition Commission continues its investigation into five other companies:
- Wilmar Continental Edible Oils and Fats (Pty) Ltd
- Africa Sun Oil Refineries (Pty) Ltd
- Epic Foods (Pty) Ltd
- Sea Lake Investments (Pty) Ltd
- Unity Food Products (Pty) Ltd
