Competition Commission v BMW South Africa (Pty) Ltd t/a BMW Motorrad (97/CR/Sep08) [2010] ZACT 21; [2010] 1 CPLR 64 (CT) (17 March 2010)

Competition Commission v BMW South Africa (Pty) Ltd t/a BMW Motorrad (97/CR/Sep08) [2010] ZACT 21; [2010] 1 CPLR 64 (CT) (17 March 2010)

The Tribunal confirmed the settlement agreement and its addendum between the Competition Commission and BMW South Africa (Pty) Ltd t/a BMW Motorrad. The agreement resolved the complaint regarding alleged resale price maintenance under section 5(2) of the Competition Act. BMW undertook not to enforce any rule, policy, or practice prohibiting authorised dealers from offering discounts on motorcycles and accessories. The Commission withdrew the complaints under sections 8(c) and 5(1). The Tribunal's order brings the proceedings between the Commission and BMW to a close, subject to the Complainant's right to apply for a declaration under section 58(1)(a)(v) or (vi) within 20 business days.

Citation
[2010] ZACT 21
Parties
Applicant: Competition Commission; Respondent: BMW South Africa (Pty) Ltd t/a BMW Motorrad
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 March 2010
Case Number
97/CR/Sep08
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement and addendum confirmed as an order of the Tribunal; proceedings between the Commission and BMW are concluded.
Judges
Norman Manoim, Yasmin Carrim, Andiswa Ndoni
Legal Topics
Resale Price Maintenance, Vertical Restrictions, Abuse of Dominance, Dealer Agreements
Competition Law Commercial and Corporate Resale Price Maintenance Vertical Restrictions Abuse of Dominance Dealer Agreements

Case Brief

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Parties

Competition Commission

Applicant

BMW South Africa (Pty) Ltd t/a BMW Motorrad

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether BMW engaged in resale price maintenance in contravention of section 5(2) of the Competition Act.
  2. 2 Whether BMW abused its dominance by restricting authorised dealers from competing outside their Dealer Areas of Responsibility (DARs) contrary to section 8(c) of the Act.
  3. 3 Whether the settlement agreement and undertakings by BMW resolve the complaint under section 5(2) of the Act.

Ratio Decidendi

The Tribunal confirmed the settlement agreement and its addendum between the Competition Commission and BMW South Africa (Pty) Ltd t/a BMW Motorrad. The agreement resolved the complaint regarding alleged resale price maintenance under section 5(2) of the Competition Act. BMW undertook not to enforce any rule, policy, or practice prohibiting authorised dealers from offering discounts on motorcycles and accessories. The Commission withdrew the complaints under sections 8(c) and 5(1). The Tribunal's order brings the proceedings between the Commission and BMW to a close, subject to the Complainant's right to apply for a declaration under section 58(1)(a)(v) or (vi) within 20 business days.

Court Disposition

Settlement agreement and addendum confirmed as an order of the Tribunal; proceedings between the Commission and BMW are concluded.

Orders

  • The settlement agreement and the addendum thereto between the Competition Commission and BMW South Africa (Pty) Ltd t/a BMW Motorrad are confirmed as an order of the Tribunal.
  • BMW undertakes not to enforce any rule, policy, or practice prohibiting authorised dealers from offering discounts on motorcycles and accessories in South Africa.