Mittal Steel South Africa, a subsidiary of the world's largest steelmaker ArcelorMittal, has been penalized by South Africa's Competition Tribunal for abusing its domestic market position and charging high prices for its flat steel.
The imposed fine represents 5.5 percent of Mittal Steel SA's ZAR 12.7 billion ($1.8 billion) flats sales in 2003 - i.e. ZAR 691.8 million ($96 million).
The tribunal has also prohibited the company from imposing conditions on the resale of its flats products. In addition, the tribunal made it clear that any attempt to keep prices high in the domestic market will result in even more severe measures against the company.
In response to the tribunal's decision, Mittal Steel SA has issued a statement saying that the company is very disappointed with the Competition Tribunal's ruling on the matter and will consider appealing against the imposed penalty and measures.