The Competition Commission has referred its findings of price fixing against 28 bicycle wholesalers and retailers to the Tribunal for adjudication.

The firms face the allegation that they colluded to set the wholesale and retail prices of cycles and accessories. In addition, they are alleged to have excluded competitors from the market.

Wholesalers sent retailers a price list with the wholesale price and the recommended retail price on a regular basis. The recommended retail price includes a mark-up of 35 percent for bicycles and 50 percent for accessories. In turn, the ceiling on mark-ups also determined the profit/margin that retailers could make on cycles and accessories.

Bicycle retailers colluded to exclude competitors like internet retailers from the market. The stratagem employed was to ask the wholesaler to sell to independent retailers at a higher price. The Competition Commission believes this conduct is likely to harm competitors and consumers.

The Commission has asked the Tribunal to levy an administrative penalty of 10 percent on the annual turnover of each of the firms involved.

The firms facing these allegations include retailers Fritz Pienaar Cycles, Cycle Lab, Hotspot Cycles, Maverick Cycles, Dunkeld Cycles, Summit Cycles, Bester Cycles, Johnson Cycle Works, Salojee's Cycles, West Rand Cycles, Bowman Cycles, Winners Cycles.

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