Competition Commission v Copper Tubing Africa (Pty) Ltd (CR025May12/SA113Aug15) [2015] ZACT 124; [2015] 2 CPLR 532 (CT) (16 September 2015)

Competition Commission v Copper Tubing Africa (Pty) Ltd (CR025May12/SA113Aug15) [2015] ZACT 124; [2015] 2 CPLR 532 (CT) (16 September 2015)

The Tribunal found that Copper Tubing Africa (Pty) Ltd admitted to engaging in price fixing with its competitor, Maksal Tubes (Pty) Ltd, in contravention of section 4(1)(b)(i) of the Competition Act. The settlement agreement, which included an administrative penalty of R8,000,000.00 and undertakings regarding future compliance, was found to be consistent with the Act and in the public interest. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and CTA relating to the alleged contravention.

Citation
[2015] ZACT 124
Parties
Applicant: Competition Commission; Respondent: Copper Tubing Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 September 2015
Case Number
CR025May12/SA113Aug15
Procedural Posture
Settlement Confirmation / Settlement Agreement Confirmation and Order
Outcome
Settlement agreement confirmed as an order of the Tribunal. Proceedings between the Commission and Copper Tubing Africa (Pty) Ltd are concluded.
Judges
M Mazwai, A Roskam, A Ndoni
Legal Topics
Price Fixing, Administrative Penalty, Settlement Agreement, Section 4 1 B I, Corporate Leniency Policy
Competition Law Price Fixing Administrative Penalty Settlement Agreement Section 4 1 B I Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Copper Tubing Africa (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Settlement Agreement Confirmation and Order

Legal Issues

  1. 1 Whether Copper Tubing Africa (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in price fixing with a competitor.
  2. 2 Whether the settlement agreement between the Competition Commission and Copper Tubing Africa (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty agreed upon is appropriate and within statutory limits.

Ratio Decidendi

The Tribunal found that Copper Tubing Africa (Pty) Ltd admitted to engaging in price fixing with its competitor, Maksal Tubes (Pty) Ltd, in contravention of section 4(1)(b)(i) of the Competition Act. The settlement agreement, which included an administrative penalty of R8,000,000.00 and undertakings regarding future compliance, was found to be consistent with the Act and in the public interest. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and CTA relating to the alleged contravention.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Proceedings between the Commission and Copper Tubing Africa (Pty) Ltd are concluded.

Orders

  • The settlement agreement between the Competition Commission and Copper Tubing Africa (Pty) Ltd is confirmed as an order of the Tribunal.
  • Copper Tubing Africa (Pty) Ltd must pay an administrative penalty of R8,000,000.00 to the Competition Commission within one month of confirmation.