Probe of collusion in dairy industry will still go ahead

THE probe into possible anti-competitive activity in the dairy industry by the Competition Commission is set to continue.

THE probe into possible anti-competitive activity in the dairy industry by the Competition Commission is set to continue.

This follows a ruling by the competition appeal court yesterday that though there were procedural errors in the commission's dealings with Woodlands Dairy, this did not warrant a dismissal of the case.

Earlier this year Woodlands Dairy and Milkwood Dairy argued at the Competition Tribunal that collusion charges against them be dropped as the commission's summonses were too vague.

While the tribunal agreed that the charges were vague, it rejected the argument that the investigation had resulted in the invasion of the privacy of the two companies.

The tribunal granted a preservation order to secure the evidence collected from both companies.

The dairy companies appealed against the order and the competition appeal court found that there were procedural errors regarding the summons served on Woodlands Dairy.

The commission was directed to return to Woodlands all evidence, and to re-start the summons proceedings. - Sapa

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