Competition Commission v BMS Medical CC (CO086Oct21) [2021] ZACT 102; [2023] 1 CPLR 7 (CT) (12 October 2021)

Competition Commission v BMS Medical CC (CO086Oct21) [2021] ZACT 102; [2023] 1 CPLR 7 (CT) (12 October 2021)

The Tribunal confirmed the consent agreement between the Competition Commission and BMS Medical CC as an order. The Commission's investigation established that BMS Medical CC and Intermed assisted each other in completing tender documents for a Department of Health Western Cape tender, which constitutes collusive tendering under section 4(1)(b)(iii) of the Competition Act. Although BMS Medical CC did not admit liability, the Commission considered mitigating factors: the respondent's small size, the small value of the tender, its failure to win the tender, and its clean record. BMS Medical CC agreed to pay an administrative penalty of R20,000, implement a competition law compliance...

Citation
[2021] ZACT 102
Parties
Applicant: Competition Commission; Respondent: BMS Medical CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 October 2021
Case Number
CO086Oct21
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty and compliance measures imposed.
Judges
AW Wessels, T Vilakazi, A Ndoni
Legal Topics
Collusive Tendering, Administrative Penalty, Consent Agreement, Section 4 1 B Iii, Compliance Programme
Competition Law Collusive Tendering Administrative Penalty Consent Agreement Section 4 1 B Iii Compliance Programme

Case Brief

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Parties

Competition Commission

Applicant

BMS Medical CC

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether BMS Medical CC contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering.
  2. 2 Whether the consent agreement should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty and compliance measures are appropriate under the circumstances.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and BMS Medical CC as an order. The Commission's investigation established that BMS Medical CC and Intermed assisted each other in completing tender documents for a Department of Health Western Cape tender, which constitutes collusive tendering under section 4(1)(b)(iii) of the Competition Act. Although BMS Medical CC did not admit liability, the Commission considered mitigating factors: the respondent's small size, the small value of the tender, its failure to win the tender, and its clean record. BMS Medical CC agreed to pay an administrative penalty of R20,000, implement a competition law compliance...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty and compliance measures imposed.

Orders

  • The consent agreement between the Competition Commission and BMS Medical CC is confirmed as an order of the Tribunal.
  • BMS Medical CC must pay an administrative penalty of R20,000 to the Competition Commission in ten monthly instalments.