After an eight-year-long legal battle, the Competition Tribunal has finalized a significant resolution, confirming a R101-million settlement with Willowton Group, the owner of the Sunfoil cooking oil brand. This settlement follows an extensive investigation that began in 2016, which scrutinized Willowton Group and other leading edible oil companies over allegations of collusion to manipulate prices.
The investigation, which also involved companies such as Wilmar Continental Edible Oils and Fats, FR Waring Holdings, Africa Sun Oil Refineries, Epic Foods, Sea Lake Investments, and Unity Food Products, focused on claims that these businesses had coordinated price hikes for edible oils, including margarine and baking fats. This alleged price-fixing behavior is believed to have been taking place as early as 2007. However, investigations into all the companies are still ongoing, with the exception of FR Waring Holdings, which has already settled.
Under the terms of the settlement agreement, Willowton Group has agreed to pay R1 million, a relatively small sum compared to the total value of the settlement. More notably, the company has committed to dedicating R100 million over the next five years toward public interest initiatives. These efforts include a R20 million bursary fund aimed at supporting educational development, as well as donations of food and groceries worth R30 million to registered non-governmental and non-profit organizations. These donations will support initiatives focused on alleviating hunger and providing food security to historically disadvantaged communities.
In addition, Willowton Group will work towards promoting economic inclusivity by procuring services from empowered service providers, thus addressing the pressing need for broader participation in the economy. The company has pledged to make the process of applying for these donations transparent, with details to be published in a national newspaper, as well as on electronic media and social platforms within the next 30 days.
While the drawn-out litigation was resource-intensive and costly for both parties, the Competition Commission deemed the settlement a practical solution to resolve the case and bring it to a close. The settlement also ended the company’s legal challenge, as Willowton Group withdrew its review application in the North Gauteng High Court, where it had sought to overturn the Commission’s warrant to search and seize evidence from their premises.
This resolution marks the end of a lengthy and contentious chapter for Willowton Group, offering both a financial penalty and an opportunity to contribute positively to society. The settlement sets an important precedent in the effort to promote both fair competition in the marketplace and social responsibility in the corporate sector.
