Competition Commission and Others v American Natural Soda Ash Corporation and Another (49/CR/Apr00) [2008] ZACT 92 (4 November 2008)

Competition Commission and Others v American Natural Soda Ash Corporation and Another (49/CR/Apr00) [2008] ZACT 92 (4 November 2008)

The Tribunal found that the Membership Agreement between ANSAC members eliminated price competition in export sales to South Africa, constituting a contravention of section 4(1)(b)(i) of the Competition Act. ANSAC made a limited admission of this contravention for settlement purposes. The Tribunal accepted the undertakings by ANSAC to cease export sales to South Africa, amend the Membership Agreement to allow direct sales by members, and refrain from influencing members regarding export sales to South Africa. The administrative penalty of R9,696,846.96, representing 8% of annual turnover, was deemed appropriate. The Tribunal confirmed the settlement agreement and its addendum, which...

Citation
[2008] ZACT 92
Parties
Applicant: Competition Commission; Applicant: Botswana Ash (Pty) Ltd; Applicant: Chemserve Technical Products (Pty) Ltd; Respondent: American Natural Soda Ash Corporation; Respondent: CHC Global (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 November 2008
Case Number
49/CR/Apr00
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement and addendum confirmed; administrative penalty imposed; proceedings fully and finally settled.
Judges
D Lewis, N Manoim, L Reyburn
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Settlement Agreement, Export Cartel, Section 4 Competition Act
Competition Law Horizontal Price Fixing Administrative Penalty Settlement Agreement Export Cartel Section 4 Competition Act

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Parties

Competition Commission

Applicant

Botswana Ash (Pty) Ltd

Applicant

Chemserve Technical Products (Pty) Ltd

Applicant

American Natural Soda Ash Corporation

Respondent

CHC Global (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether the Membership Agreement between ANSAC members eliminated price competition in export sales to South Africa in contravention of section 4(1)(b)(i) of the Competition Act.
  2. 2 Whether the Tribunal should confirm the settlement agreement and the undertakings made by ANSAC and CHC.
  3. 3 Whether the administrative penalty imposed is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal found that the Membership Agreement between ANSAC members eliminated price competition in export sales to South Africa, constituting a contravention of section 4(1)(b)(i) of the Competition Act. ANSAC made a limited admission of this contravention for settlement purposes. The Tribunal accepted the undertakings by ANSAC to cease export sales to South Africa, amend the Membership Agreement to allow direct sales by members, and refrain from influencing members regarding export sales to South Africa. The administrative penalty of R9,696,846.96, representing 8% of annual turnover, was deemed appropriate. The Tribunal confirmed the settlement agreement and its addendum, which...

Court Disposition

Settlement agreement and addendum confirmed; administrative penalty imposed; proceedings fully and finally settled.

Orders

  • The settlement agreement and the addendum thereto are confirmed as agreed to and proposed by the Competition Commission and the Respondents.
  • ANSAC shall make no further export sales to South Africa for delivery more than six months after the date of confirmation of this agreement.