Competition Commission v African Oxygen Limited (019976) [2015] ZACT 38; [2015] 1 CPLR 143 (CT) (22 April 2015)

Competition Commission v African Oxygen Limited (019976) [2015] ZACT 38; [2015] 1 CPLR 143 (CT) (22 April 2015)

The Tribunal confirmed that the SCI Agreement and Air Products Agreements contained restraints that divided the market for carbon dioxide and urea, and precluded competition in contravention of sections 4(1)(b)(ii) and 5(1) of the Competition Act. The exclusivity provisions resulted in input foreclosure and substantial prevention and lessening of competition. Although African Oxygen Limited did not admit to the Commission's findings, it accepted that the restraints amounted to contraventions and agreed to amend the agreements and pay an administrative penalty. The Tribunal found the administrative penalty appropriate and confirmed the consent agreement as an order, thereby concluding all...

Citation
[2015] ZACT 38
Parties
Applicant: Competition Commission; Respondent: African Oxygen Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 April 2015
Case Number
019976
Procedural Posture
Settlement Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and African Oxygen Limited relating to the alleged contraventions are concluded.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Market Division, Vertical Agreements, Administrative Penalty, Input Foreclosure, Consent Order
Competition Law Commercial and Corporate Market Division Vertical Agreements Administrative Penalty Input Foreclosure Consent Order

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Competition Commission

Applicant

African Oxygen Limited

Respondent

Procedural Posture

Settlement Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether the SCI Agreement and Air Products Agreements contravene section 4(1)(b)(ii) and section 5(1) of the Competition Act by dividing markets and restricting competition.
  2. 2 Whether the exclusivity provisions in the agreements result in input foreclosure and substantial prevention or lessening of competition.
  3. 3 Whether the administrative penalty imposed is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal confirmed that the SCI Agreement and Air Products Agreements contained restraints that divided the market for carbon dioxide and urea, and precluded competition in contravention of sections 4(1)(b)(ii) and 5(1) of the Competition Act. The exclusivity provisions resulted in input foreclosure and substantial prevention and lessening of competition. Although African Oxygen Limited did not admit to the Commission's findings, it accepted that the restraints amounted to contraventions and agreed to amend the agreements and pay an administrative penalty. The Tribunal found the administrative penalty appropriate and confirmed the consent agreement as an order, thereby concluding all...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and African Oxygen Limited relating to the alleged contraventions are concluded.

Orders

  • The consent agreement as agreed to and proposed by the Competition Commission and African Oxygen Limited is confirmed.
  • African Oxygen Limited shall pay an administrative penalty of R3,269,865 to the Competition Commission within 30 days of confirmation of the consent agreement.