Competition Commission v Civcon Construction (Pty) Ltd (019786) [2014] ZACT 82 (19 November 2014)

Competition Commission v Civcon Construction (Pty) Ltd (019786) [2014] ZACT 82 (19 November 2014)

The Tribunal found that Civcon Construction (Pty) Ltd admitted to engaging in collusive tendering with Infraset in respect of the South Deep Mine project, specifically by agreeing to provide a cover price and pay a loser’s fee. This conduct constitutes a contravention of section 4(1)(b)(iii) of the Competition Act. The parties entered into a consent agreement in which Civcon accepted liability, agreed to pay an administrative penalty equal to 1% of its annual turnover for the year ended February 2013, and undertook to implement a competition law compliance programme and refrain from future contraventions. The Tribunal was satisfied that the consent agreement addressed the contravention...

Citation
[2014] ZACT 82
Parties
Applicant: Competition Commission; Respondent: Civcon Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 November 2014
Case Number
019786
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Civcon concluded in respect of the admitted conduct.
Judges
M Mazwai, M Mokuena, F Tregenna
Legal Topics
Collusive Tendering, Administrative Penalty, Cover Pricing, Losers Fee, Section 4 1 B Iii, Competition Compliance Programme
Competition Law Collusive Tendering Administrative Penalty Cover Pricing Losers Fee Section 4 1 B Iii Competition Compliance Programme

Case Brief

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Parties

Competition Commission

Applicant

Civcon Construction (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Civcon Construction (Pty) Ltd contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering.
  2. 2 Whether the consent agreement between the Competition Commission and Civcon Construction (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contravention.

Ratio Decidendi

The Tribunal found that Civcon Construction (Pty) Ltd admitted to engaging in collusive tendering with Infraset in respect of the South Deep Mine project, specifically by agreeing to provide a cover price and pay a loser’s fee. This conduct constitutes a contravention of section 4(1)(b)(iii) of the Competition Act. The parties entered into a consent agreement in which Civcon accepted liability, agreed to pay an administrative penalty equal to 1% of its annual turnover for the year ended February 2013, and undertook to implement a competition law compliance programme and refrain from future contraventions. The Tribunal was satisfied that the consent agreement addressed the contravention...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Civcon concluded in respect of the admitted conduct.

Orders

  • The consent agreement between the Competition Commission and Civcon Construction (Pty) Ltd is confirmed as an order of the Tribunal.
  • Civcon Construction (Pty) Ltd shall pay an administrative penalty of R798,385.98 to the Commission in six monthly instalments of R133,064.33 each.