Competition Tribunal imposes a R16m penalty on Unilever

Unilever will pay a R16m penalty to settle an anticompetitive behavior investigation by the Competition Commission.

1. The settlement still needs approval from the Competition Tribunal.
2. In 2017, the Commission opened a case against Unilever and Sime Darby Hudson Knight for dividing markets between 2004-2013.
3. They allegedly entered an agreement to produce and supply different sized products to avoid the Competition Act.
4. Sime Darby SA settled with the Commission in 2016.
5. In 2018, Unilever sold its spreads business to Remgro.
6. As part of the settlement, Unilever will increase local supplier buying by R340m over 4 years and set up a R40m development fund.
7. Unilever will also donate products worth R3m to 18,780 schools over 5 years and provide interest-free loans to black-owned businesses.
8. The Commission said the agreement preserves healthy competition and protects consumer rights.
9. Unilever SA declined to comment on the settlement.