Competition Commission v Cast Industries (Pty) Ltd (017129) [2013] ZACT 60 (16 July 2013)

Competition Commission v Cast Industries (Pty) Ltd (017129) [2013] ZACT 60 (16 July 2013)

The Tribunal confirmed the settlement agreement between the Competition Commission and Cast Industries (Pty) Ltd, finding that the respondent, as successor to the business of the former Cast Industries, is liable for the administrative penalty arising from cartel conduct in the generic paving blocks market. The respondent admitted the contravention by its predecessor and agreed to pay an administrative penalty of R567,970.48, representing 2.5% of its affected turnover for the financial year ended February 2011. The Tribunal further accepted the respondent's undertakings to circulate a statement summarising the settlement agreement to relevant employees and directors, and to implement a...

Citation
[2013] ZACT 60
Parties
Applicant: Competition Commission; Respondent: Cast Industries (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 July 2013
Case Number
017129
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance undertakings accepted.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Price Fixing, Administrative Penalty, Cartel Conduct, Corporate Leniency Policy
Competition Law Price Fixing Administrative Penalty Cartel Conduct Corporate Leniency Policy

Case Brief

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Parties

Competition Commission

Applicant

Cast Industries (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Cast Industries (Pty) Ltd is liable for cartel conduct committed by its predecessor company.
  2. 2 Whether the settlement agreement and administrative penalty are appropriate under the Competition Act.
  3. 3 Whether the compliance undertakings by Cast Industries (Pty) Ltd are sufficient to prevent future contraventions.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Cast Industries (Pty) Ltd, finding that the respondent, as successor to the business of the former Cast Industries, is liable for the administrative penalty arising from cartel conduct in the generic paving blocks market. The respondent admitted the contravention by its predecessor and agreed to pay an administrative penalty of R567,970.48, representing 2.5% of its affected turnover for the financial year ended February 2011. The Tribunal further accepted the respondent's undertakings to circulate a statement summarising the settlement agreement to relevant employees and directors, and to implement a...

Court Disposition

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

Orders

  • The settlement agreement between the Competition Commission and Cast Industries (Pty) Ltd is confirmed as an order of the Tribunal.
  • Cast Industries (Pty) Ltd shall pay an administrative penalty of R567,970.48 to the Competition Commission within six months of the order.