South African competition law public interest requirement can drive positive social change

Anthony Crane, competition law expert at Pinsent Masons, said: “The case demonstrates that beyond penalising anti-competitive behaviour, settlements can be leveraged to achieve broader public interest objectives, fostering a more equitable and inclusive economy.”

The settlement agreement brings an end to a prolonged legal battle between the Competition Commission and the Willowton Group over allegations of price fixing and market division in the edible oils sector.

The legal dispute dates back to December 2016 when the Competition Commission launched an investigation into the Willowton Group and other firms. The investigation focused on allegations of collusion to fix prices and divide markets for products such as baking fats and margarine, with claims of anti-competitive behaviour stretching back to 2007. The allegations led to a series of legal challenges and protracted litigation, with Willowton Group consistently denying any wrongdoing.

However, both parties have now reached a consent agreement, which the Competition Tribunal has confirmed as an order. The settlement includes a direct payment of R1 million (approximately $54,780) by Willowton Group and public interest commitments valued at R100 million ($5.5 million) over the next five years.

The public interest commitments are designed to promote public interest in line with the objectives of the Competition Act including economic development, particularly in historically disadvantaged communities. These commitments include the establishment of an education trust. The trust will provide bursaries totalling R20 million ($1.1 million) over five years to historically disadvantaged students in need of financial support for tertiary education. At least 60% of the bursaries will be awarded to female students. Willowton Group has also committed to investing in various community development projects aimed at improving the socio-economic conditions of historically disadvantaged communities. These initiatives will focus on areas such as education, healthcare, and infrastructure development. Additionally, the company will allocate funds to support SMEs, particularly those owned by historically disadvantaged individuals. This support will include financial assistance, training, and mentorship programmes to help these businesses grow and thrive.

Crane said: “The inclusion of public interest obligations in the settlement order is a landmark decision that underscores the importance of addressing broader socio-economic issues through competition law enforcement. By committing to these public interest initiatives, Willowton Group is not only resolving its legal disputes but also contributing to the upliftment of disadvantaged communities and promoting economic inclusivity.”