Unilever, the multinational consumer goods company, has reached a settlement agreement with the Competition Commission regarding a long-standing price-fixing case.
- The Competition Tribunal has accepted the settlement, which requires Unilever to pay a R16 million administrative penalty and implement remedial actions worth over R380 million.
- The case stems from allegations that Unilever and Sime Darby Hudson and Knight manipulated the prices of margarine and edible oil products between 2004 and 2013.
- The settlement agreement also includes various remedial measures for Unilever, such as donating R3 million worth of hygiene and oral products to public schools over five years.
- Unilever is also obligated to increase its annual procurement value from local firms by at least R340 million for four years.
- In addition, Unilever will establish a R40 million Enterprise Supplier Development Fund, providing interest-free business loans to qualifying black-owned businesses in manufacturing, logistics, and wholesale industries.
- The settlement comes after a decade-long investigation by competition authorities, and it follows the earlier settlement between the Competition Commission and co-accused Sime Darby, which involved a R35 million administrative penalty.