Competition Commission v Concrete Units (Pty) Ltd and Others (23/CR/Feb09) [2010] ZACT 26; [2010] 1 CPLR 74 (CT) (31 March 2010)

Competition Commission v Concrete Units (Pty) Ltd and Others (23/CR/Feb09) [2010] ZACT 26; [2010] 1 CPLR 74 (CT) (31 March 2010)

The Tribunal found that Concrete Units admitted to participating in cartel conduct, including price fixing, market division, and collusive tendering, in contravention of sections 4(1)(b)(i)-(iii) of the Competition Act. The settlement agreement, which includes an administrative penalty of R5,763,743 (7% of Concrete Units' 2008 turnover), undertakings regarding future compliance, and the implementation of a competition law compliance programme, was considered appropriate and in accordance with the Act. The Tribunal confirmed the settlement agreement as a consent order, concluding all proceedings between the Commission and Concrete Units relating to the alleged contraventions.

Citation
[2010] ZACT 26
Parties
Applicant: The Competition Commission; Respondent: Concrete Units (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 March 2010
Case Number
23/CR/Feb09
Procedural Posture
Settlement Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as a consent order; 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 Commercial and Corporate Cartel Conduct Price Fixing Market Division Collusive Tendering Administrative Penalty Consent Order

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Parties

The Competition Commission

Applicant

Concrete Units (Proprietary) Limited

Respondent

Procedural Posture

Settlement Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Did Concrete Units engage in cartel conduct in contravention of sections 4(1)(b)(i), 4(1)(b)(ii), and 4(1)(b)(iii) of the Competition Act?
  2. 2 Is the settlement agreement between the Commission and Concrete Units appropriate for confirmation as a consent order?
  3. 3 Is the administrative penalty imposed on Concrete Units in accordance with the Act?

Ratio Decidendi

The Tribunal found that Concrete Units admitted to participating in cartel conduct, including price fixing, market division, and collusive tendering, in contravention of sections 4(1)(b)(i)-(iii) of the Competition Act. The settlement agreement, which includes an administrative penalty of R5,763,743 (7% of Concrete Units' 2008 turnover), undertakings regarding future compliance, and the implementation of a competition law compliance programme, was considered appropriate and in accordance with the Act. The Tribunal confirmed the settlement agreement as a consent order, concluding all proceedings between the Commission and Concrete Units relating to the alleged contraventions.

Court Disposition

Settlement agreement confirmed as a consent order; administrative penalty imposed.

Orders

  • The settlement agreement between the Competition Commission and Concrete Units (Proprietary) Limited is confirmed as a consent order.
  • Concrete Units shall pay an administrative penalty of R5,763,743 within six months of the confirmation of this order.