Competition Commission v Bridgestone South Africa (Pty) Ltd (92/CR/Dec09) [2012] ZACT 34; [2012] 2 CPLR 232 (CT) (8 May 2012)

Competition Commission v Bridgestone South Africa (Pty) Ltd (92/CR/Dec09) [2012] ZACT 34; [2012] 2 CPLR 232 (CT) (8 May 2012)

The Tribunal found that Maxiprest admitted to contravening sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by entering into agreements with ATT to fix prices and allocate customers for Bridgestone and Firestone branded tyres. The settlement agreement, reached after negotiations between the Commission, Bridgestone, and Maxiprest, included Maxiprest's undertaking to refrain from future contraventions, implement a compliance programme, and pay an administrative penalty of R9,355,970.39. Bridgestone undertook to supply ATT on the same commercial terms as other independent dealers. The Tribunal confirmed the settlement agreement as an order, thereby concluding the proceedings...

Citation
[2012] ZACT 34
Parties
Applicant: Competition Commission; Respondent: Bridgestone South Africa (Pty) Ltd; Respondent: Maxiprest Tyres (Pty) Ltd; Respondent: Auto and Truck Tyres CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 May 2012
Case Number
92/CR/Dec09
Procedural Posture
Consent Order / Settlement Agreement Confirmation
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed on Maxiprest.
Judges
Y Carrim, A Ndoni, M Mokuena
Legal Topics
Price Fixing, Market Allocation, Collusive Tendering, Minimum Resale Price Maintenance, Administrative Penalty, Corporate Leniency Policy
Competition Law Price Fixing Market Allocation Collusive Tendering Minimum Resale Price Maintenance Administrative Penalty Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Bridgestone South Africa (Pty) Ltd

Respondent

Maxiprest Tyres (Pty) Ltd

Respondent

Auto and Truck Tyres CC

Respondent

Procedural Posture

Consent Order / Settlement Agreement Confirmation

Legal Issues

  1. 1 Whether Maxiprest and Bridgestone contravened sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by engaging in price fixing and market allocation.
  2. 2 Whether the settlement agreement between the Commission, Bridgestone, and Maxiprest should be confirmed as an order of the Tribunal.
  3. 3 Whether Maxiprest is liable for an administrative penalty under the Competition Act.

Ratio Decidendi

The Tribunal found that Maxiprest admitted to contravening sections 4(1)(b)(i) and 4(1)(b)(ii) of the Competition Act by entering into agreements with ATT to fix prices and allocate customers for Bridgestone and Firestone branded tyres. The settlement agreement, reached after negotiations between the Commission, Bridgestone, and Maxiprest, included Maxiprest's undertaking to refrain from future contraventions, implement a compliance programme, and pay an administrative penalty of R9,355,970.39. Bridgestone undertook to supply ATT on the same commercial terms as other independent dealers. The Tribunal confirmed the settlement agreement as an order, thereby concluding the proceedings...

Court Disposition

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

Orders

  • The settlement agreement between the Competition Commission, Bridgestone South Africa (Pty) Ltd, and Maxiprest Tyres (Pty) Ltd is confirmed as an order of the Tribunal.
  • Maxiprest Tyres (Pty) Ltd is ordered to pay an administrative penalty of R9,355,970.39 to the Competition Commission within 60 days.