Competition Commission South Africa v Liberty Group Ltd (83/CR/Dec10) [2011] ZACT 13; [2011] 1 CPLR 111 (CT) (4 March 2011)

Competition Commission South Africa v Liberty Group Ltd (83/CR/Dec10) [2011] ZACT 13; [2011] 1 CPLR 111 (CT) (4 March 2011)

The Tribunal found that Liberty Group, together with other property owners, entered into agreements that divided markets by restraining certain parties from leasing retail space to Woolworths and Mica for extended periods. This conduct exceeded the scope of town-planning legislation and constituted a contravention of section 4(1)(b)(ii) of the Competition Act. Liberty Group admitted liability, confirmed the cessation of the conduct, and undertook not to enforce the restraints. The Tribunal confirmed the consent agreement, including the administrative penalty of R18,811,708.55 and the requirement for Liberty Group to implement a compliance programme. The addendum further required Liberty...

Citation
[2011] ZACT 13
Parties
Applicant: Competition Commission South Africa; Respondent: Liberty Group Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 March 2011
Case Number
83/CR/Dec10
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Liberty Group admits contravention and is liable for an administrative penalty.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Market Division, Anti Competitive Agreements, Administrative Penalty, Consent Order, Retail Property Restraint, Compliance Programme
Competition Law Commercial and Corporate Land and Property Market Division Anti Competitive Agreements Administrative Penalty Consent Order Retail Property Restraint +1 more

Case Brief

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Parties

Competition Commission South Africa

Applicant

Liberty Group Limited

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether the notarial deeds of restraint and settlement agreements between Liberty Group and other property owners constituted market division in contravention of section 4(1)(b)(ii) of the Competition Act.
  2. 2 Whether the conduct under investigation had ceased and whether Liberty Group undertook to comply with the Competition Act going forward.
  3. 3 Whether an administrative penalty should be imposed and confirmed as part of the consent agreement.

Ratio Decidendi

The Tribunal found that Liberty Group, together with other property owners, entered into agreements that divided markets by restraining certain parties from leasing retail space to Woolworths and Mica for extended periods. This conduct exceeded the scope of town-planning legislation and constituted a contravention of section 4(1)(b)(ii) of the Competition Act. Liberty Group admitted liability, confirmed the cessation of the conduct, and undertook not to enforce the restraints. The Tribunal confirmed the consent agreement, including the administrative penalty of R18,811,708.55 and the requirement for Liberty Group to implement a compliance programme. The addendum further required Liberty...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Liberty Group admits contravention and is liable for an administrative penalty.

Orders

  • The consent agreement and addendum between the Competition Commission and Liberty Group Limited are confirmed as an order of the Tribunal.
  • Liberty Group Limited shall pay an administrative penalty of R18,811,708.55 within thirty days of confirmation of the order.