Competition Commission v Afgri Operations Ltd; In re: Competition Commission v Afgri Operations Ltd and Others (43/CR/Jun11) [2011] ZACT 36; [2011] 1 CPLR 93 (CT) (15 June 2011)

Competition Commission v Afgri Operations Ltd; In re: Competition Commission v Afgri Operations Ltd and Others (43/CR/Jun11) [2011] ZACT 36; [2011] 1 CPLR 93 (CT) (15 June 2011)

The Tribunal confirmed the consent agreement between the Competition Commission and Afgri Operations Limited. The Tribunal found that Afgri, as a member of the Grain Silo Industry, participated in prohibited price fixing of SAFEX tariffs and used these tariffs to determine non-SAFEX rates, constituting indirect...

Source-derived case information.

Citation
[2011] ZACT 36
Parties
Applicant: The Competition Commission; Respondent: Afgri Operations Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 June 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed. Administrative penalty imposed. Compliance programme ordered.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Industry Association Conduct, Competition Compliance Programme
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Industry Association Conduct Competition Compliance Programme

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Summary, issues, holding and outcome

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Parties

The Competition Commission

Applicant

Afgri Operations Limited

Respondent

Procedural Posture

Consent Order / Order Confirming Consent Agreement

Legal Issues

  1. 1 Did Afgri Operations Limited, as a member of the Grain Silo Industry, participate in prohibited price fixing of SAFEX tariffs in contravention of section 4(1)(b)(i) of the Competition Act?
  2. 2 Did Afgri use fixed SAFEX tariffs to determine its non-SAFEX rates, amounting to indirect collusion?
  3. 3 Did Afgri impermissibly exchange detailed cost information with competitors via the Grain Silo Industry?

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Afgri Operations Limited. The Tribunal found that Afgri, as a member of the Grain Silo Industry, participated in prohibited price fixing of SAFEX tariffs and used these tariffs to determine non-SAFEX rates, constituting indirect collusion. Afgri also exchanged detailed cost information with competitors, facilitating anti-competitive conduct. Afgri admitted to the contraventions, ceased the conduct, and agreed to pay an administrative penalty of R15,600,000, representing 4% of its 2009 grain silo storage turnover. Afgri undertook to cooperate with the Commission in future proceedings and to implement a...

Court Disposition

Consent agreement confirmed. Administrative penalty imposed. Compliance programme ordered.

Orders

  • The consent agreement between the Competition Commission and Afgri Operations Limited is confirmed.
  • Afgri Operations Limited shall pay an administrative penalty of R15,600,000 to the Competition Commission within 30 business days of confirmation of this order.