On March 28 2011 11 participants in an alleged cartel in the wire industry successfully lodged an application with the Competition Tribunal to stay proceedings against them, pending a review application in the South Gauteng High Court. In the review application, the companies are together challenging the Competition Commission's Corporate Leniency Policy and the commission's decision to grant an alleged participant in the cartel, Associated Wire Industries Pty Ltd (trading as Meshwire), corporate leniency.

In their review application, the companies allege that the commission did not have jurisdiction to grant Meshwire corporate leniency and that the commission was therefore acting beyond the scope of its powers. The companies also allege that the evidence which was used as the basis of the complaint to the tribunal was unlawfully obtained and therefore the commission is not permitted to use it as the basis of its complaint.

The tribunal found it prudent not to make any finding and agreed to stay the proceedings pending the outcome of the high court order.

For further information on this topic please contact Janine Simpson at Webber Wentzel by telephone (+27 11 530 5000), fax (+27 11 530 5111) or email ([email protected]).