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The Competition Commission and Pioneer Foods presented their opening arguments to the Competition Tribunal on Wednesday.
In a statement, the tribunal said the commission's witness, Premier Foods Cape regional director Terrence Dennis Lavery, gave evidence and was cross-examined.
The hearing concerns a price-fixing complaint against Pioneer Foods brought by the Competition Commission.
The commission alleged that Pioneer was part of a bread cartel involved in price fixing.
The cartel allegedly fixed the date of implementation of price increases and divided markets in contravention of the Competition Act.
The commission has asked the tribunal for an order declaring that Pioneer had entered into an agreement or engaged in a concerted practice that involved the direct or indirect fixing of a selling price.
The commission also wants an order from the tribunal that directs Pioneer to desist from such conduct as well as the levy of a penalty on the bread manufacturer.
The commission has requested the imposition of an administrative penalty on Pioneer of 10 percent of its annual turnover for the 2006/2007 financial year.
Also, it requested a further penalty of 10 percent of its annual turnover for the 2006 financial year for its bread operations in the Western Cape.
Sapa
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