Competition Commission v Air Products South Africa (Pty) Ltd (2009Mar4329) [2013] ZACT 18; [2013] 1 CPLR 62 (CT) (20 March 2013)

Competition Commission v Air Products South Africa (Pty) Ltd (2009Mar4329) [2013] ZACT 18; [2013] 1 CPLR 62 (CT) (20 March 2013)

The Tribunal confirmed the consent agreement between the Competition Commission and Air Products South Africa (Pty) Ltd. The Tribunal found that Air Products admitted to contravening sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by engaging in price fixing and market allocation with Sasol in respect of liquid nitrogen and liquid argon. The suite of agreements between the parties restricted competition by fixing prices and allocating markets, thereby removing Sasol as a competitor in the wholesale supply of these gases. Air Products agreed to amend the agreements, implement a compliance programme, circulate the consent agreement to relevant employees, desist from...

Citation
[2013] ZACT 18
Parties
Applicant: Competition Commission; Respondent: Air Products South Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 March 2013
Case Number
2009Mar4329
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; undertakings for future compliance accepted; proceedings between the Commission and Air Products concluded.
Judges
T Madima, A Ndoni, A Roskam
Legal Topics
Price Fixing, Market Allocation, Administrative Penalty, Consent Agreement, Section 4 Competition Act, Compliance Programme
Competition Law Price Fixing Market Allocation Administrative Penalty Consent Agreement Section 4 Competition Act Compliance Programme

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Parties

Competition Commission

Applicant

Air Products South Africa (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Air Products South Africa (Pty) Ltd and Sasol entered into agreements that contravened section 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by engaging in price fixing and market allocation.
  2. 2 Whether the suite of agreements between Air Products and Sasol limited competition in the supply and marketing of industrial gases in South Africa.
  3. 3 Whether Air Products is liable for an administrative penalty under the Competition Act.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Air Products South Africa (Pty) Ltd. The Tribunal found that Air Products admitted to contravening sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by engaging in price fixing and market allocation with Sasol in respect of liquid nitrogen and liquid argon. The suite of agreements between the parties restricted competition by fixing prices and allocating markets, thereby removing Sasol as a competitor in the wholesale supply of these gases. Air Products agreed to amend the agreements, implement a compliance programme, circulate the consent agreement to relevant employees, desist from...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; undertakings for future compliance accepted; proceedings between the Commission and Air Products concluded.

Orders

  • The consent agreement between the Competition Commission and Air Products South Africa (Pty) Ltd is confirmed as an order of the Tribunal.
  • Air Products South Africa (Pty) Ltd shall pay an administrative penalty of R2,762,978.70 to the Competition Commission within 30 days of confirmation of the order.