Competition Commission v Domoney Brothers Bloemfontein (Pty) (Ltd) (CO022May20) [2020] ZACT 99 (14 May 2020)

Competition Commission v Domoney Brothers Bloemfontein (Pty) (Ltd) (CO022May20) [2020] ZACT 99 (14 May 2020)

The Tribunal confirmed the consent agreement between the Competition Commission and Domoney Brothers Bloemfontein (Pty) Ltd, finding that Domoney's significant increase in mark-up on FFP1 unvalved dust masks during the COVID-19 national disaster period constituted excessive pricing in contravention of section 8(1)(a) of the Competition Act read with Regulation 4 of the Consumer Protection Regulations. The Tribunal accepted Domoney's admission of contravention and the agreed remedial measures, including a monetary contribution to the Solidarity Fund, donation of face shields to specified institutions, implementation of a compliance programme, and staff notification. The order brings final...

Citation
[2020] ZACT 99
Parties
Applicant: Competition Commission; Respondent: Domoney Brothers Bloemfontein (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 May 2020
Case Number
CO022May20
Procedural Posture
Consent Order Application / Consent Agreement Confirmation
Outcome
Consent agreement confirmed as an order of the Tribunal, with full and final settlement of all proceedings relating to the investigated conduct.
Judges
Y Carrim, A Ndoni, A Roskam
Legal Topics
Excessive Pricing, Covid 19 Regulations, Dominant Firm, Solidarity Fund Contribution
Competition Law Commercial and Corporate Excessive Pricing Covid 19 Regulations Dominant Firm Solidarity Fund Contribution

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Parties

Competition Commission

Applicant

Domoney Brothers Bloemfontein (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Consent Agreement Confirmation

Legal Issues

  1. 1 Whether Domoney Brothers Bloemfontein (Pty) Ltd contravened section 8(1)(a) of the Competition Act by charging excessive prices for FFP1 unvalved dust masks during the COVID-19 national disaster period.
  2. 2 Whether the mark-up increases by Domoney in February and March 2020 were justified by corresponding cost increases.
  3. 3 What remedial and compliance measures are appropriate to address the contravention.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Domoney Brothers Bloemfontein (Pty) Ltd, finding that Domoney's significant increase in mark-up on FFP1 unvalved dust masks during the COVID-19 national disaster period constituted excessive pricing in contravention of section 8(1)(a) of the Competition Act read with Regulation 4 of the Consumer Protection Regulations. The Tribunal accepted Domoney's admission of contravention and the agreed remedial measures, including a monetary contribution to the Solidarity Fund, donation of face shields to specified institutions, implementation of a compliance programme, and staff notification. The order brings final...

Court Disposition

Consent agreement confirmed as an order of the Tribunal, with full and final settlement of all proceedings relating to the investigated conduct.

Orders

  • Domoney Brothers Bloemfontein (Pty) Ltd must pay R30,040.00 to the Solidarity Fund within 30 days of confirmation of the order.
  • Domoney Brothers Bloemfontein (Pty) Ltd must donate face shields amounting to R30,040.00 (including VAT) within 7 days to specified institutions.