Competition Commission South Africa v MGK Bedryfsmaatskappy (Pty) Ltd (43/CR/Jun11) [2011] ZACT 60; [2011] 2 CPLR 264 (CT) (16 August 2011)

Competition Commission South Africa v MGK Bedryfsmaatskappy (Pty) Ltd (43/CR/Jun11) [2011] ZACT 60; [2011] 2 CPLR 264 (CT) (16 August 2011)

The Tribunal found that MGK Bedryfsmaatskappy (Pty) Ltd, as a member of the Grain Silo Industry, participated in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act. MGK admitted its involvement and agreed to the terms of a consent agreement, including the payment of an administrative penalty and the implementation of a compliance programme. The Tribunal confirmed the consent agreement as an order, thereby concluding all proceedings between the Commission and MGK relating to the alleged contravention. The order reflects the parties' agreement and the Tribunal's satisfaction that the terms are appropriate and in accordance...

Citation
[2011] ZACT 60
Parties
Applicant: Competition Commission; Respondent: MGK Bedryfsmaatskappy (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 August 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order; administrative penalty imposed; proceedings between the Commission and MGK concluded.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Order, Industry Association Conduct
Competition Law Horizontal Price Fixing Administrative Penalty Consent Order Industry Association Conduct

Case Brief

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Parties

Competition Commission

Applicant

MGK Bedryfsmaatskappy (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether MGK Bedryfsmaatskappy (Pty) Ltd, as a member of the Grain Silo Industry, participated in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act.
  2. 2 Whether the conduct warrants the imposition of an administrative penalty and confirmation of a consent agreement.

Ratio Decidendi

The Tribunal found that MGK Bedryfsmaatskappy (Pty) Ltd, as a member of the Grain Silo Industry, participated in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act. MGK admitted its involvement and agreed to the terms of a consent agreement, including the payment of an administrative penalty and the implementation of a compliance programme. The Tribunal confirmed the consent agreement as an order, thereby concluding all proceedings between the Commission and MGK relating to the alleged contravention. The order reflects the parties' agreement and the Tribunal's satisfaction that the terms are appropriate and in accordance...

Court Disposition

Consent agreement confirmed as an order; administrative penalty imposed; proceedings between the Commission and MGK concluded.

Orders

  • The consent agreement between the Competition Commission and MGK Bedryfsmaatskappy (Pty) Ltd is confirmed as an order of the Tribunal.
  • MGK Bedryfsmaatskappy (Pty) Ltd shall pay an administrative penalty of R226,800 to the Competition Commission within 10 days of confirmation of this order.