Competition Commission v Cobro Concrete (Pty) Ltd (23/CR/Feb09) [2010] ZACT 25; [2010] 1 CPLR 68 (CT) (31 March 2010)

Competition Commission v Cobro Concrete (Pty) Ltd (23/CR/Feb09) [2010] ZACT 25; [2010] 1 CPLR 68 (CT) (31 March 2010)

The Tribunal confirmed the settlement agreement between the Competition Commission and Cobro Concrete (Pty) Ltd as an order. Cobro admitted to contraventions of section 4(1)(b) of the Competition Act, including price fixing, market division, and collusive tendering in the precast concrete market. The Tribunal found that the administrative penalty of R 4 022 568.29, representing 6.5% of Cobro's turnover for 2008, was appropriate and in accordance with the Act. Cobro undertook to cooperate with the Commission in future prosecutions and to implement a compliance programme to prevent future contraventions. The order concludes all proceedings between the parties relating to the investigated...

Citation
[2010] ZACT 25
Parties
Applicant: Competition Commission; Respondent: Cobro Concrete (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 March 2010
Case Number
23/CR/Feb09
Procedural Posture
Settlement Agreement / Confirmation of Consent Order
Outcome
Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Cartel Conduct, Price Fixing, Market Division, Collusive Tendering, Administrative Penalty, Consent Order
Competition Law Cartel Conduct Price Fixing Market Division Collusive Tendering Administrative Penalty Consent Order

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Parties

Competition Commission

Applicant

Cobro Concrete (Pty) Ltd

Respondent

Procedural Posture

Settlement Agreement / Confirmation of Consent Order

Legal Issues

  1. 1 Whether Cobro Concrete (Pty) Ltd contravened section 4(1)(b) of the Competition Act by engaging in cartel conduct.
  2. 2 Whether the settlement agreement between the Competition Commission and Cobro Concrete (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the agreed administrative penalty is appropriate under the circumstances.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Cobro Concrete (Pty) Ltd as an order. Cobro admitted to contraventions of section 4(1)(b) of the Competition Act, including price fixing, market division, and collusive tendering in the precast concrete market. The Tribunal found that the administrative penalty of R 4 022 568.29, representing 6.5% of Cobro's turnover for 2008, was appropriate and in accordance with the Act. Cobro undertook to cooperate with the Commission in future prosecutions and to implement a compliance programme to prevent future contraventions. The order concludes all proceedings between the parties relating to the investigated...

Court Disposition

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

Orders

  • The settlement agreement between the Competition Commission and Cobro Concrete (Pty) Ltd is confirmed as an order of the Tribunal.
  • Cobro Concrete (Pty) Ltd must pay an administrative penalty of R 4 022 568.29 within six months of the date of confirmation of the agreement.