Competition Commission v BJ Transport Management Services (Pty) Lts t/a Advance Transport (CO139Oct16) [2016] ZACT 110; [2016] 2 CPLR 610 (CT) (9 November 2016)

Competition Commission v BJ Transport Management Services (Pty) Lts t/a Advance Transport (CO139Oct16) [2016] ZACT 110; [2016] 2 CPLR 610 (CT) (9 November 2016)

Advance Transport admitted to engaging in 198 instances of collusive tendering and cover pricing, in contravention of section 4(1)(b) of the Competition Act. The Tribunal found that the consent agreement, which included an administrative penalty and undertakings for future compliance, was appropriate and in accordance with the Act. The penalty did not exceed the statutory maximum and the agreement provided for full and final settlement of all prohibited practices by Advance Transport for the relevant period. The Tribunal confirmed the consent agreement as an order, thereby concluding proceedings between the Commission and Advance Transport regarding these contraventions.

Citation
[2016] ZACT 110
Parties
Applicant: Competition Commission; Respondent: BJ Transport Management Services (Pty) Ltd t/a Advance Transport
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 November 2016
Case Number
CO139Oct16
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed and compliance undertakings accepted.
Judges
A Wessels, A Ndoni, M Mazwai
Legal Topics
Collusive Tendering, Cover Pricing, Administrative Penalty, Section 4 1 B Contravention, Consent Agreement, Compliance Programme
Competition Law Commercial and Corporate Collusive Tendering Cover Pricing Administrative Penalty Section 4 1 B Contravention Consent Agreement Compliance Programme

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Parties

Competition Commission

Applicant

BJ Transport Management Services (Pty) Ltd t/a Advance Transport

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Advance Transport contravened section 4(1)(b)(i), (ii), and (iii) of the Competition Act through collusive tendering and cover pricing.
  2. 2 Whether the consent agreement should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate and compliant with the Act.

Ratio Decidendi

Advance Transport admitted to engaging in 198 instances of collusive tendering and cover pricing, in contravention of section 4(1)(b) of the Competition Act. The Tribunal found that the consent agreement, which included an administrative penalty and undertakings for future compliance, was appropriate and in accordance with the Act. The penalty did not exceed the statutory maximum and the agreement provided for full and final settlement of all prohibited practices by Advance Transport for the relevant period. The Tribunal confirmed the consent agreement as an order, thereby concluding proceedings between the Commission and Advance Transport regarding these contraventions.

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed and compliance undertakings accepted.

Orders

  • The consent agreement between the Competition Commission and BJ Transport Management Services (Pty) Ltd t/a Advance Transport is confirmed as an order of the Tribunal.
  • Advance Transport shall pay an administrative penalty of R709,073.12 to the Commission, with an initial payment of R259,073.12 within 30 days and the balance in 24 monthly instalments of not less than R20,000.00.