Competition Commission v Cape Gate (Pty) Ltd (CR029Sep09; SA203Mar23) [2023] ZACT 62 (23 July 2023)

Competition Commission v Cape Gate (Pty) Ltd (CR029Sep09; SA203Mar23) [2023] ZACT 62 (23 July 2023)

The Tribunal confirmed the settlement agreement between the Competition Commission and Cape Gate (Pty) Ltd. The Tribunal found that the agreement was entered into to resolve allegations of anti-competitive conduct, including price fixing and market allocation, in the long steel products market. Although Cape Gate did not admit liability, it agreed to pay an administrative penalty of R1,375,344.32, which does not exceed 10% of its annual turnover, and to implement a competition law compliance programme. The Tribunal was satisfied that the settlement agreement complied with the requirements of the Competition Act and that its confirmation would bring finality to the proceedings between the...

Citation
[2023] ZACT 62
Parties
Applicant: The Competition Commission; Respondent: Cape Gate (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 July 2023
Case Number
CR029Sep09
Procedural Posture
Settlement Application / Settlement Agreement Confirmation
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the parties concluded.
Judges
G Budlender, I Valodia, A Ndoni
Legal Topics
Price Fixing, Market Allocation, Administrative Penalty, Settlement Agreement, Corporate Leniency Policy
Competition Law Price Fixing Market Allocation Administrative Penalty Settlement Agreement Corporate Leniency Policy

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Parties

The Competition Commission

Applicant

Cape Gate (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Settlement Agreement Confirmation

Legal Issues

  1. 1 Whether Cape Gate (Pty) Ltd contravened section 4(1)(b)(i) and (ii) of the Competition Act by engaging in price fixing and market allocation for long steel products.
  2. 2 Whether the settlement agreement between the Competition Commission and Cape Gate (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate and compliant with the Act.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Cape Gate (Pty) Ltd. The Tribunal found that the agreement was entered into to resolve allegations of anti-competitive conduct, including price fixing and market allocation, in the long steel products market. Although Cape Gate did not admit liability, it agreed to pay an administrative penalty of R1,375,344.32, which does not exceed 10% of its annual turnover, and to implement a competition law compliance programme. The Tribunal was satisfied that the settlement agreement complied with the requirements of the Competition Act and that its confirmation would bring finality to the proceedings between the...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the parties concluded.

Orders

  • The settlement agreement between the Competition Commission and Cape Gate (Pty) Ltd is confirmed as an order of the Tribunal.
  • Cape Gate (Pty) Ltd must pay an administrative penalty of R1,375,344.32 within 60 days of confirmation of the settlement agreement.