Competition Commission v BLG Leads Logistics of South Africa (Pty) Ltd (C0026May15) [2015] ZACT 131; [2015] 2 CPLR 515 (CT) (31 August 2015)

Competition Commission v BLG Leads Logistics of South Africa (Pty) Ltd (C0026May15) [2015] ZACT 131; [2015] 2 CPLR 515 (CT) (31 August 2015)

The Tribunal confirmed the consent agreement between the Competition Commission and BLG Leads Logistics of South Africa (Pty) Ltd, finding that BLG admitted to contravening section 4(1)(b)(ii) of the Competition Act by participating in market division through customer allocation clauses in a joint venture agreement. The consent agreement included undertakings by BLG to refrain from future anti-competitive conduct, to delete the offending clauses, to implement a compliance programme, and to pay an administrative penalty proportionate to its shareholding. The Tribunal was satisfied that the agreement and its addendum addressed the contravention and provided sufficient remedies to prevent...

Citation
[2015] ZACT 131
Parties
Applicant: Competition Commission; Respondent: BLG Leads Logistics of South Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 August 2015
Case Number
C0026May15
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Proceedings between the parties relating to the contravention are concluded.
Judges
A Wessels, A Roskam, A Ndoni
Legal Topics
Market Division, Collusion, Administrative Penalty, Joint Venture Agreement, Section 4 Competition Act
Competition Law Market Division Collusion Administrative Penalty Joint Venture Agreement Section 4 Competition Act

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 2 Authorities cited 1 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Competition Commission

Applicant

BLG Leads Logistics of South Africa (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether BLG Leads Logistics of South Africa (Pty) Ltd contravened section 4(1)(b)(ii) of the Competition Act by dividing markets through customer allocation clauses in a joint venture agreement.
  2. 2 Whether the consent agreement and its addendum adequately address the contravention and future compliance.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and BLG Leads Logistics of South Africa (Pty) Ltd, finding that BLG admitted to contravening section 4(1)(b)(ii) of the Competition Act by participating in market division through customer allocation clauses in a joint venture agreement. The consent agreement included undertakings by BLG to refrain from future anti-competitive conduct, to delete the offending clauses, to implement a compliance programme, and to pay an administrative penalty proportionate to its shareholding. The Tribunal was satisfied that the agreement and its addendum addressed the contravention and provided sufficient remedies to prevent...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Proceedings between the parties relating to the contravention are concluded.

Orders

  • The consent agreement and addendum between the Competition Commission and BLG Leads Logistics of South Africa (Pty) Ltd are confirmed as an order of the Tribunal.
  • BLG Leads Logistics of South Africa (Pty) Ltd must pay an administrative penalty of R928,306.28 to the Competition Commission within thirty days of confirmation.