Competition Commission v Afrisam (South Africa) (Pty) Ltd (93/CR/Nov11) [2011] ZACT 98; [2012] 1 CPLR 53 (CT) (16 November 2011)

Competition Commission v Afrisam (South Africa) (Pty) Ltd (93/CR/Nov11) [2011] ZACT 98; [2012] 1 CPLR 53 (CT) (16 November 2011)

The Tribunal confirmed the consent agreement between the Competition Commission and AfriSam as an order. AfriSam admitted to contravening sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by participating in price fixing and market division arrangements with competitors. The Tribunal accepted AfriSam's undertakings to refrain from future anti-competitive conduct, implement a compliance programme, and cooperate with the Commission in ongoing investigations and prosecutions. The Tribunal imposed an administrative penalty of R124,878,870.00, representing 3% of AfriSam's annual turnover for cement in the SACU region for the financial year ended 31 December 2010, to be paid in six...

Citation
[2011] ZACT 98
Parties
Applicant: Competition Commission; Respondent: Afrisam (South Africa) (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 November 2011
Case Number
93/CR/Nov11
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and AfriSam concluded.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Price Fixing, Market Division, Administrative Penalty, Consent Agreement, Cartel Conduct
Competition Law Commercial and Corporate Price Fixing Market Division Administrative Penalty Consent Agreement Cartel Conduct

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Parties

Competition Commission

Applicant

Afrisam (South Africa) (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether AfriSam contravened sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by engaging in price fixing and market division agreements with competitors.
  2. 2 Whether the consent agreement between the Competition Commission and AfriSam should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for AfriSam's admitted contraventions.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and AfriSam as an order. AfriSam admitted to contravening sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by participating in price fixing and market division arrangements with competitors. The Tribunal accepted AfriSam's undertakings to refrain from future anti-competitive conduct, implement a compliance programme, and cooperate with the Commission in ongoing investigations and prosecutions. The Tribunal imposed an administrative penalty of R124,878,870.00, representing 3% of AfriSam's annual turnover for cement in the SACU region for the financial year ended 31 December 2010, to be paid in six...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and AfriSam concluded.

Orders

  • The consent agreement between the Competition Commission and AfriSam (South Africa) (Pty) Ltd is confirmed as an order of the Tribunal.
  • AfriSam shall pay an administrative penalty of R124,878,870.00 to the Commission in six equal bi-annual instalments over three years, with the first instalment due in February 2012.