Watchdog withdraws price-fixing bicycle case Commission withdraws case against 28 bicycle retailers and wholesalers. MICHAEL BLEBY Published: 2011/06/15 06:59:55 AM THE Competition Commission has withdrawn its case against 28 bicycle retailers and wholesalers, ahead of the planned August pretrial hearing that could have bogged it down in legal challenges, the commission said yesterday. "Several respondents raised exceptions," said commission spokesman Oupa Bodibe. "This case was going to be bogged down in legal technical challenges before the merits were heard. When we assessed it, we decided it was better to withdraw than argue all those." The commission hopes to initiate a new complaint this year, but the number of respondents may not be the same, he said . The commission’s announcement a year ago drew much criticism of a heavy-handed approach sweeping up into a probe of all the businesses represented at a September 2008 meeting in Midrand, the purported minutes of which were then posted on an internet cycling chat forum. While the watchdog says it still has a case to prosecute, it is already seeing the effect of recent higher court rulings about the way it formulates the complaints it brings to the Competition Tribunal for adjudication. South African Breweries in April successfully challenged the commission’s case against the brewer, saying it had expanded the original case unlawfully. The tribunal agreed and set aside the case. Retailers and wholesalers yesterday said the withdrawal backed up what they had said all along. "There was no price-fixing," said Andrew McLean, one of the owners of Cycle Lab, a chain of stores in Cape Town, Durban, Pretoria and Johannesburg. "We told them that all along. We’re relieved to get it withdrawn, but not surprised. We’re disappointed that it took so long to get this point." Alan Hodson, MD of Cape Town- based Omico , one of the country’s largest wholesalers, said he was also pleased the commission had withdrawn its case. "I don’t believe it will be opened again," he said. The commission’s probe arose out of the record of a 2008 meeting, posted on www.thehubsa.co.za, at which a number of retailers and wholesalers came together to discuss pricing. Mr McLean and Mr Hodson are quoted in the document as calling for unified price increases by all retailers. They and others say the notes are not an accurate record of the meeting and that they did not do anything illegal. Challenges remain in the industry, Mr McLean said yesterday. "There are issues. Like, for instance, nobody manufactures bikes locally and yet the government levies a 20% duty on complete bicycles coming in. That makes bikes 20% more expensive than those you’re buying from America on the internet. The industry, like all industries, has challenges and is having to make changes, but is there price-fixing? Absolutely not." http://www.businessday.co.za/articles/Content.aspx?id=145877