Competition Commission v Aveng (Africa) Ltd t/a Duraset (65/CR/Sep09) [2010] ZACT 56; [2010] 2 CPLR 258 (CT) (25 August 2010)

Competition Commission v Aveng (Africa) Ltd t/a Duraset (65/CR/Sep09) [2010] ZACT 56; [2010] 2 CPLR 258 (CT) (25 August 2010)

The Tribunal confirmed the settlement agreement between the Competition Commission and Duraset as an order. Duraset admitted to contravening section 4(1)(b)(ii) and (iii) of the Competition Act by dividing the market for mining roof bolts and engaging in collusive tendering. The Tribunal found that the administrative penalty of R21,900,000, representing 5% of Duraset's annual turnover for 2008, was appropriate and in line with the Act. The Tribunal accepted Duraset's undertakings to refrain from future contraventions, to circulate the settlement agreement internally, to continue compliance measures, and to cooperate with the Commission in further prosecutions. The order concludes all...

Citation
[2010] ZACT 56
Parties
Applicant: Competition Commission; Respondent: Aveng (Africa) Ltd t/a Duraset
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 August 2010
Case Number
65/CR/Sep09
Procedural Posture
Settlement Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.
Judges
A Wessels, M Mokuena, T Orleyn
Legal Topics
Market Allocation, Collusive Tendering, Administrative Penalty, Corporate Leniency Policy, Consent Order
Competition Law Market Allocation Collusive Tendering Administrative Penalty Corporate Leniency Policy Consent Order

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Parties

Competition Commission

Applicant

Aveng (Africa) Ltd t/a Duraset

Respondent

Procedural Posture

Settlement Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Duraset contravened section 4(1)(b)(ii) and (iii) of the Competition Act by dividing the market and engaging in collusive tendering for mining roof bolts.
  2. 2 Whether the settlement agreement between the Commission and Duraset should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contraventions.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Duraset as an order. Duraset admitted to contravening section 4(1)(b)(ii) and (iii) of the Competition Act by dividing the market for mining roof bolts and engaging in collusive tendering. The Tribunal found that the administrative penalty of R21,900,000, representing 5% of Duraset's annual turnover for 2008, was appropriate and in line with the Act. The Tribunal accepted Duraset's undertakings to refrain from future contraventions, to circulate the settlement agreement internally, to continue compliance measures, and to cooperate with the Commission in further prosecutions. The order concludes all...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.

Orders

  • The settlement agreement between the Competition Commission and Aveng (Africa) Ltd t/a Duraset is confirmed as an order of the Tribunal.
  • Duraset shall pay an administrative penalty of R21,900,000 to the Commission within ninety (90) days of confirmation of the order.