Competition Commission v British Airways Plc (019257) [2014] ZACT 99; [2014] 2 CPLR 396 (CT) (13 August 2014)

Competition Commission v British Airways Plc (019257) [2014] ZACT 99; [2014] 2 CPLR 396 (CT) (13 August 2014)

The Tribunal confirmed the settlement agreement between the Competition Commission and British Airways Plc, finding that the respondent admitted to contravening section 4(1)(b)(i) of the Competition Act by coordinating fuel surcharge rates with Virgin Atlantic. The Tribunal accepted the administrative penalty of R21,765,207.00, which does not exceed the statutory maximum of 10% of annual turnover. The Tribunal was satisfied that the settlement agreement included appropriate undertakings for future compliance and concluded all proceedings between the parties in relation to the investigated contraventions.

Citation
[2014] ZACT 99
Parties
Applicant: Competition Commission; Respondent: British Airways Plc
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 August 2014
Case Number
019257
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.
Judges
N Manoim, Y Carrim, M Mokuena
Legal Topics
Price Fixing, Administrative Penalty, Settlement Agreement, Section 4 1 B I Contravention
Competition Law Price Fixing Administrative Penalty Settlement Agreement Section 4 1 B I Contravention

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

Parties

Competition Commission

Applicant

British Airways Plc

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether British Airways Plc contravened section 4(1)(b)(i) of the Competition Act by engaging in price coordination with Virgin Atlantic.
  2. 2 Whether the settlement agreement between the Commission and British Airways Plc should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate and within statutory limits.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and British Airways Plc, finding that the respondent admitted to contravening section 4(1)(b)(i) of the Competition Act by coordinating fuel surcharge rates with Virgin Atlantic. The Tribunal accepted the administrative penalty of R21,765,207.00, which does not exceed the statutory maximum of 10% of annual turnover. The Tribunal was satisfied that the settlement agreement included appropriate undertakings for future compliance and concluded all proceedings between the parties in relation to the investigated contraventions.

Court Disposition

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

Orders

  • The settlement agreement between the Competition Commission and British Airways Plc is confirmed as an order of the Tribunal.
  • British Airways Plc must pay an administrative penalty of R21,765,207.00 to the Competition Commission within 30 calendar days of this order.