Published On: Wed, Sep 23rd, 2015

Advertising firms under probe for alleged collusion

ccJOHANNESBURG, (CAJ News) – THE Competition Commission has raided three recruitment agencies in Pretoria amid reports of collusion.

The commission conducted a search and seizure operation at the premises of Human Communications (Pty) Ltd, Kone Staffing Solutions (Pty) Ltd and JobVest (Pty) Ltd.

“The dawn raid operation forms part of the Commission’s investigation into alleged collusive conduct in the market for the provision of recruitment advertising services,” Themba Mathebula, External Communications Coordinator of the commission, said.

The Commission duly obtained warrants authorizing it to search the offices of the firms at the High Court of South Africa, Gauteng Division, Pretoria.

The agencies specialize in recruitment advertising services. Their services entail placing job advertisements in media platforms on behalf of their clients. According to the commission, they also receive and process responses to the job advertisements on behalf of their clients, which are
mainly government departments, agencies and municipalities.

The firms allegedly collude when bidding for tenders by discussing their responses to requests for quotations and decide on the price at which each would tender for its services. It is also alleged that they agree on how to rotate advertising work amongst them. Such conduct is prohibited by the Competition Act as it amounts to price fixing, market division and collusive tendering.

Mathebula said the Commission was conducting the operation with due regard to the rights of the firms and all the affected persons.

During the search the Commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether a contravention of the Competition Act has taken place.

– CAJ News

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