Competition Commission v Crown Relocations (Pty) Ltd (019810) [2014] ZACT 85 (19 November 2014)

Competition Commission v Crown Relocations (Pty) Ltd (019810) [2014] ZACT 85 (19 November 2014)

The Tribunal found that Crown Relocations (Pty) Ltd admitted to engaging in collusive tendering practices in contravention of section 4(1)(b)(iii) of the Competition Act. The consent agreement, which included an admission of liability, undertakings to cooperate with the Commission, implementation of a compliance programme, and payment of an administrative penalty amounting to 7% of annual turnover, was deemed appropriate and proportionate. The Tribunal was satisfied that the agreement addressed the contravention and provided adequate remedies. Accordingly, the Tribunal confirmed the consent agreement as an order, thereby concluding all proceedings between the parties in respect of the...

Citation
[2014] ZACT 85
Parties
Applicant: Competition Commission; Respondent: Crown Relocations (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 November 2014
Case Number
019810
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 Crown Relocations (Pty) Ltd in respect of the admitted conduct concluded.
Judges
M Mazwai, M Mokuena, F Tregenna
Legal Topics
Collusive Tendering, Administrative Penalty, Consent Agreement, Section 4 1 B Iii, Corporate Leniency Policy
Competition Law Collusive Tendering Administrative Penalty Consent Agreement Section 4 1 B Iii Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Crown Relocations (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Did Crown Relocations (Pty) Ltd contravene section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering?
  2. 2 Is the consent agreement between the Competition Commission and Crown Relocations (Pty) Ltd appropriate for confirmation as an order of the Tribunal?
  3. 3 Is the administrative penalty imposed proportionate and compliant with the Act?

Ratio Decidendi

The Tribunal found that Crown Relocations (Pty) Ltd admitted to engaging in collusive tendering practices in contravention of section 4(1)(b)(iii) of the Competition Act. The consent agreement, which included an admission of liability, undertakings to cooperate with the Commission, implementation of a compliance programme, and payment of an administrative penalty amounting to 7% of annual turnover, was deemed appropriate and proportionate. The Tribunal was satisfied that the agreement addressed the contravention and provided adequate remedies. Accordingly, the Tribunal confirmed the consent agreement as an order, thereby concluding all proceedings between the parties in respect of the...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and Crown Relocations (Pty) Ltd in respect of the admitted conduct concluded.

Orders

  • The consent agreement between the Competition Commission and Crown Relocations (Pty) Ltd is confirmed as an order of the Tribunal.
  • Crown Relocations (Pty) Ltd shall pay an administrative penalty of R849,873.36, representing 7% of its annual turnover for the financial year ended December 2013.